Transpower releases 2018/19 annual result

State-owned Enterprise Transpower has today announced its annual results for the 2019 financial year with a final dividend of $99 million, bringing total dividends for FY19 to $165 million. Financial highlights for FY19 include: o Revenue of $1,029.9 million - a decrease of 5% on the previous year's revenue as Transpower passed through economic value adjustments of $16.8 million and operating expenditure savings to its customers. o Operating expenses at $297.0 million (including increased provisions of $5.65 million), 1% higher than the $293.9 million incurred in the previous year. o EBITDAIF of $732.9 million, a decrease of 7% on the previous year ($790.5 million). o Year-end NPAT of $258.4 million, an increase of $6.3 million (2.5%) on last year. o Capital expenditure of $328.8 million, up $35.1 million on the previous year. o Final dividend of $99 million declared. Total dividend payout for FY19 of $165 million. Chair Pip Dunphy said the company had performed well over the year achieving significant cost savings while delivering an increase in project spend to support the needs of customers. "During the year, Transpower completed $328.8 million of capital spend towards grid infrastructure, representing a 12 per cent increase to support our customers' needs," she said. "At the same time, cost savings of around $36 million have been achieved through our focus on innovation, efficiency, agility and service excellence. These savings come on top of the $12 million achieved in FY18." Revenue is down for the year, however this is primarily driven by lower transmission revenue gathered, as Transpower passed rebates of $16.8 million through to its customers. "Operating expenses were up one per cent on last year to $297.0 million, including a $5.65 million provision for lines clearance and earth potential rise rectification," Ms Dunphy said. "This captures an obligation we have to carry out future remediation and recognises additional information compiled during the year that enabled Transpower to more accurately assess additional work required across approximately 275 sites. Ms Dunphy said the business has continued to enable wider industry discussion and dialogue on New Zealand's energy future and the planning that's needed to enable it. "Last year we released Te Mauri Hiko - Energy Futures where we sought to define the future of New Zealand's energy system and bring industry together to discuss the challenges and opportunities we face. "This year we have continued to drive the conversation forward with three additional discussion documents on batteries, solar, and process heat. The move to a low carbon energy economy and potentially a doubling in demand for electricity will have implications for not just our business but the entire sector and future investment decisions must be made with these implications in mind," Ms Dunphy said. Transpower is now awaiting the final decision from the Commerce Commission on its draft proposal for its third Regulatory Control Period (RCP3). "Once we have a final decision, we will again look to our customers and stakeholders to continue the discussion on how Transpower can enable the electrification of New Zealand's economy to meet future energy needs," she concludes. Transpower's full annual report and financial accounts are now available at: www.transpower.co.nz/resources. For further information, please contact: Laura Ackland, Senior Corporate Communications Advisor on 04 590 6721 or 027 565 3783. End CA:00339664 For:TRP Type:FLLYR Time:2019-08-23 09:48:29