28 Aug 2024
Transpower has today released its financial statements and Integrated Report for the financial year ending 30 June 2024 (FY24).
Transpower’s operating revenue increased by 1.9% to $930 million in line with expectations for the regulatory period.
Operating expenses were $385 million, a 6% increase from the previous year, mainly due to higher people costs, following an increase in employee numbers to support electrification. This facilitates the preparation and investigations to enable our increasing capital works programme in the coming years.
Net profit after tax was $90 million, a 29% decrease from the prior year, primarily due to an increase in deferred tax expense of $34 million following the removal of tax depreciation deductions on non-residential buildings.
A final dividend of 6.0 cents per share or $66 million has been declared. This represents the balance of the $110 million full-year dividend forecast in Transpower’s 2023/2024 Statement of Corporate Intent (SCI).
Transpower Chair Dr Keith Turner says Transpower has delivered a steady operating performance over the last year.
“We continue to deliver solid returns for our shareholder, the New Zealand Government. However, given the increased investment expectations from 2025 onwards, the dividend for the 2024 year is $10 million lower than 2023,” he said.
The Commerce Commission 2023 Input Methodology final decision, released in December 2023, confirmed Transpower’s regulated asset base will be inflation indexed from its fourth regulatory control period (RCP4).
“The Board notes that this decision materially reduces the revenue that Transpower will derive over the next ten to fifteen years relative to the current nominal approach for RCP3. As a result of this, and the substantial capital works programme anticipated over the next ten years, the Board anticipates lower dividends from the start of RCP4.”
“Despite challenges, over the year we have remained responsive to both long-term project work, and the short-term demands of significant events. We are proactively working with suppliers and service providers to deliver maintenance and capital programmes on time and as close to budget as possible.”
“Transpower continues to be in a strong position to deliver in the years ahead as we take steps to prepare for the electrification of New Zealand’s economy.” he said.
The work to ensure Aotearoa’s national grid continues to deliver the power New Zealanders need is front and centre in Transpower’s Integrated Report, which provides an in-depth look at the company’s performance, including a range of environmental, social and economic metrics. The report also provides information on the impact Transpower has had on Aotearoa New Zealand and its communities over the past year.
The Integrated Annual Report, which includes detailed financial statements, is available to read here.
For further information, please contact:
Transpower media phone, 021 195 8613.