KEY POINTS:
TrustPower posted a first half after tax surplus of $66.8 million, up 4 per cent from a year earlier.
The company also announced today it was considering an offer of unsecured subordinated bonds, worth up to $100m, with $50m reserved until late this month for holders of a bond issue maturing in mid-December.
In the six months to the end of September, TrustPower's New Zealand generation assets produced 1161 GWh, compared with 1106 GWh in the corresponding period last year.
Hydro production was up 9 per cent, supported by strong production in the second quarter due to good rainfall in all of TrustPower's key catchment areas, the company said.
Wind production was down 7 per cent.
Combined generation production during the second quarter improved significantly compared to the prior quarter which helped to reduce the level of spot electricity purchasing during high priced periods, TrustPower said.
The weighted average spot price of electricity bought by the company over the reporting period was $184 per MWh nearly three times the cost a year earlier.
That reflected the impact of severe drought on the electricity market during autumn and winter this year, TrustPower said.
The company's earnings before interest, tax, depreciation, amortisation, and adjustments for financial instruments rose 18 per cent to $136.7m.
A partially imputed interim dividend of 16 cents per share, compared to 15cps last year, will be paid, along with an unimputed special dividend of 10cps.
The ratio of debt to debt plus equity was 36 per cent at the end of September, up from 30 per cent at the same time the previous year, reflecting debt funding of the Snowtown Wind Farm and Deep Stream hydro enhancement projects, TrustPower said.
Total debt, including subordinated bonds, as at September 30 was $708m. Unutilised group committed debt facilities were $240m.
Construction of the 98.7MW Snowtown Wind Farm in South Australia was completed during the reporting period, and the project was operating to expectation.
- NZPA
