Transpower announces half-year results

Transpower New Zealand today released its financial results for the six months ending 31 December 2017. Net profit after tax, before net changes in the fair value of financial instruments, was $120.3 million, an 18% increase on $101.6 million from the prior period. This was largely due to an increase in regulated transmission revenue, driven by an historical pricing under-recovery wash-up. Transmission revenue was up 6% to $525.5 million (2016: $496.7 million). The Board has declared an interim dividend of $66.0 million, representing 40% of the full year dividend forecast in the 2017/18 Statement of Corporate Intent. Chair Hon Tony Ryall said the organisation has performed well over the last six months. "We're seeing the efficiencies that we need to achieve, both in the way we manage our assets and deliver grid services. To date we have achieved savings against the regulatory approved operating cost allowance of $50 million, or 6%. "This focus supports our long-term view of providing attractive, cost-effective services that meet our customers changing needs." Capital expenditure was $122.1 million for the first half of the year, up 11% from the same time last year (2016: $109.7 million). "This is in line with the slight increase we expect to see in spend over the next few years, in line with our approved capital programme." "It's encouraging to see that in the last six months, our sustained commitment to safety is reflected in our overall Total Recordable Injury Frequency Rate (TRIFR) score, which includes Transpower and all its Service Providers. The latest TRIFR score of 5.0 is unchanged from June 2017 (rolling 12-month average), while our Year to Date figure is 4.1." Transpower's half year report will be published once it is tabled in Parliament. For further information, please contact: Clea Marshall, Corporate Communications Manager on 04 590 6633 or 027 807 9904. End CA:00314605 For:TRP Type:HALFYR Time:2018-02-22 16:27:05