Transpower releases half-year results

Transpower New Zealand today released its financial results for the six months ending 31 December 2020. o Net profit after tax, before net changes in the fair value of financial instruments, was $70.6 million, down 33% compared to the previous period's result of $105.2 million. o Transmission revenue declined 6.4% to $451.8 million (2019: $482.7 million) mainly due to the impact of the Regulatory Control Period reset, which reduced WACC from 7.19% to 4.57%. o Operating expenses at $145.2 million, were up 7.5% compared to the previous period (2019: $135.1 million). o Capital expenditure was $156.8 million, down 10% from the same time last year (2019: $173.4 million) and in line with Transpower's approved capital programme. o An interim dividend of 4 cents/share or $48 million has been declared, representing 40 per cent of the expected full-year dividend forecast in Transpower's 2020/21 Statement of Corporate Intent. Chair of Transpower's Board, Pip Dunphy, said the Company has posted a solid first-half result for the six months to December 2020, keeping major projects moving while continuing to manage through Covid-19, responding to changes in the sector and commencing a new Regulatory Control Period from 1 July 2020. "We are on track to achieve the majority of our Statement of Corporate Intent (SCI) targets including an improved performance in safety. "These results speak to the way Transpower has managed to safely deliver its services to New Zealanders, all while continuing to plan for the future. "The main project focus for the business, the Clutha Upper-Waitaki Lines Project (CUWLP), is now well underway and has passed its first major milestone with two circuits uprated. This work is critical to ensuring the low-cost, renewable electricity generated in the South can be shared with the rest of the country when the New Zealand Aluminium Smelter at Tiwai Point closes. "Work to progress the Transmission Pricing Methodology (TPM) has also been a significant focus. In the next six months, we will concentrate on delivering the draft methodology to the Electricity Authority and communicate indicative prices to our customers. "We continue to see an increasing focus from industry and the Government on its response to Climate Change and the electrification of the economy. "Transpower is working closely with industry to plan for the development of a net-zero grid, and with the February release of the Electrification Roadmap, identifying the specific steps that could be taken to electrify the process heat and transport sectors. "We remain committed and focussed to doing our part in achieving New Zealand's net-zero carbon ambitions," she says. ENDS For further information, please contact: Deb Gray, Corporate Communications Manager on 04 590 7631 or 021 624 170. End CA:00368137 For:TRP Type:INTERIM Time:2021-02-24 14:24:33