Transpower lifts sharply

By Richard Braddell

WELLINGTON - The operator of the national electricity grid, Transpower, has reported a sharply improved annual profit, despite a fall in revenue in part due to reductions in many of its charges.

Net profit of $111.5 million, excluding asset writedowns of $14.1 million, in the June 30 year, compares with a $69.6 million profit in 1998, a result reached before asset writedowns of $407.1 million.

The whole net profit is to be paid to the Government in dividends, against the usual board policy of paying 75 per cent of the net surplus.

Transpower's chief executive, Bob Thomson, said the improved performance was helped by the previous year's restructuring that had cost $12 million but had reduced staff by 120 and had quickly produced a payback.

Since April, Transpower has reduced its charges by a total of $12 million, in part reflecting its lower asset valuation.