Transpower New Zealand Limited Analysis

Overview

Transpower New Zealand Limited are a State Owned Enterprise, tasked with owning and operating New Zealand's National Grid - the network of high voltage transmission lines and substations that connect areas of generation with towns and cities across the country.

TRP issued Fixed Rated Bonds on the NZDX on 30 November 2011. The Bonds are set to mature on 30 November 2018.

Performance

The following information was extracted from Transpower New Zealand Limited's full year results, released 28 August 2024:

Our first half results for the 2025 financial year were stable, both in terms of performance and returns to shareholders. Operating revenue increased by 2.4% to $476 million (2023: $465 million).

Operating expenses were $192 million, a 3.2% increase from the previous period (2023: $186 million), primarily due to increased staffing costs to support our growing work programme.

Net profit after tax was $64 million, a 5.9% decrease from the previous period (2023: $68 million), primarily due to higher operating and interest expenses.

Capital expenditure was $309 million, a 55.3% increase from the previous period (2023: $199 million), consistent with Transpower’s approved capital programme.

Transpower has maintained its financial performance despite higher supply chain, maintenance and resourcing costs. For 2024/25, we are on track to achieve all targets set out in the SCI other than HVAC availability, which is significantly impacted by proactive cable repairs in Auckland, a project which is not impacting electricity supply to consumers and is on track for completion in the first half of 2026.