Power profits remain steady

By RICHARD BRADDELL

WELLINGTON - Tauranga-based electricity retailer and lines company TrustPower has reported a $15.2 million net profit for the September first half - identical to that of the first half of last year.

But at that point the similarities end.

Restructuring of the electricity industry has forced TrustPower to divest its lines business in favour of retailing and generation, and the company's business is substantially different.

Although revenue more than doubled to $209.6 million from the previous period's $91.5 million, the growth was in part cosmetic, due to the company's role in collecting lines company charges before passing them on.

Nevertheless, cash earnings before interest, tax, depreciation and amortisation, were up $2.8 million to $32.7 million.

With large non-cash items - depreciation, amortisation and the writedown in intangibles together totalling more than $10 million - TrustPower was comfortable in paying a dividend equal to the entire after-tax surplus. Accordingly, a fully imputed 8.66c a share is to be paid.

With the acquisition of Citipower customers in Nelson, TrustPower has 218,000 clients, and some large new national accounts, including Fletcher Challenge, Auckland Airport, Air New Zealand and Telecom, have added an annualised 2500 GWh to sales.

A third of sales of 2131 GWh came from outside TrustPower's incumbent areas.

But dry conditions reduced generation by 5 per cent relative to 10-year averages.

Next month, the company expects to complete the acquisition of the 31.7 MW Tararua windfarm, the largest and newest in the Southern Hemisphere.

The company is part of a consortium intending to bid for three Waikaremoana hydro stations to be sold by Genesis next year.