TrustPower tells shareholders Alliant is a long term investor

Shareholders were yesterday assured that American company Alliant Energy would maintain a long term investment in electricity retailer and generator, TrustPower.

Alliant is one of three major shareholders that control 88 per cent of TrustPower's shares.

It announced this month that it was "evaluating its investment" -- looking at a means of monetising its investment. And it was reported two weeks ago that Alliant wanted to review its investment in the Tauranga-based company.

Simon Young, managing director of Alliant Energy New Zealand, told shareholders at the TrustPower annual meeting that he knew of no plans to change that investment.

"Alliant comes out of the mid west of United States, operating in Iowa and Wisconsin, and holds values that are the same in New Zealand. They are indeed long-term investors -- having first invested in Powerco and Central Power in 1995," said Mr Young, also a director of TrustPower.

Alliant has a 23.8 per cent stake in TrustPower, with Infratil holding 35.2 per cent and Tauranga Energy Consumer Trust 28.6 per cent.

Earlier, Alliant said it was continuing to evaluate the various alternatives to monetise its New Zealand investment. Mr Young said "monetise" did not necessarily mean sale.

Alliant is the last big American energy investor remaining of those who came into New Zealand during the 1990s energy boom.

TrustPower, the country's fourth-largest power generator and retailer, announced at the annual meeting in Tauranga that it had made a flying start to its new financial year - with the unaudited first quarter net profit leaping 60 per cent to $24.4 million.

This compared with $15.7 million for the same three months to June 30 last year.

Shares in TrustPower yesterday climbed 6c to $5.90 on the news.

The gross surplus was $52.1 million, compared with $39.8 million a year ago.

The result was boosted by a one-off payment, before tax, of $3.7 million from other retailers, following the reconciliation of energy volumes traded under the old electricity market which has now been wound up.

TrustPower chairman Harold Titter said during the first quarter lake storage levels and in flows were below average, causing a spike in spot electricity prices.

The average price was $75 per MWh against $43 per MWh in the first quarter of 2004 when hydro storage levels were higher.

TrustPower now runs 34 power stations throughout the country, and it generated 496GWh of electricity during the first quarter, an increase of 3 per cent on the 480GWh for the same period last year.

Mr Titter said it was still too early to predict the full year result, however the first quarter showed the company was making solid progress.

"At this stage the directors are confident that another good result for the full year is achievable," he said.

For the last financial year ending March 31, 2005, TrustPower had an 18 per cent rise in net profit to $73.2 million.

The company is today paying a fully imputed final dividend of 10.5c a share - bringing the total payout for the 2005 financial year to 19.5c, an 11 per cent increase.

- BAY OF PLENTY TIMES