TrustPower says profit up 14pc

Energy retailer and generator TrustPower posted a 13 per cent increase in half-year net profit today on the back of higher power prices, and expected a "good financial outcome" for the full year.

For the six months ended September 30, unaudited net profit after tax rose to $57.5 million, while earnings before interest, tax, depreciation and amortisation rose 6 per cent to $114.2m.

TrustPower's own generation rose 8 per cent to 1082 gigawatt hours. Customer numbers were steady at 220,000.

"TrustPower's hydro generation storage catchments remain at satisfactory levels which together with purchase contracts the company has in place, leaves the company adequately positioned to meet customer demand over the remainder of this financial year," chairman Harold Titter said.

During most of the first half, below average hydro lake storage levels and inflows pushed up wholesale electricity prices, although prices fell in September when inflows to South Island lakes increased.

"The first half result is pleasing. At this stage the directors are confident that a good financial outcome for the full year is achievable," Mr Titter said.

Debt to debt-plus-equity was at 28 per cent against 27 per cent a year earlier.

The 93 megawatt (MW) Tararua Stage 3 wind farm expansion was on schedule and on budget, although progress was slower on the proposed 72MW Wairau hydro generation project in Marlborough, with a resource consent ruling expected towards the end of the year.

TrustPower will submit a revised resource consent application for a 200MW wind farm in Otago, for which it already has landowner consents, by the end of November. The company originally planned a 300MW project.

The company declared an interim dividend of 13c per share, up from 11cps a year earlier, payable on January 12, 2007.

Shares in TrustPower, whose 23.8 per cent owner Alliant is selling its stake, were steady at $6.80.

- NZPA