Transpower New Zealand today released its financial results for the six months ended 31 December 2015.
Net profit after tax, before net changes in the fair value of financial instruments, was $99.0 million, a decrease of 8 per cent on the prior period of $107.7 million. As previously signalled, the decrease reflects lower transmission revenue following the Commerce Commission’s reset of a number of revenue parameters as part of the second regulatory control period (RCP2).
Transmission revenue decreased 3 per cent to $482.6 million (Dec 2014: $496.2million) as the RCP2 settings took effect from 1 April 2015. Operating expenses were $0.5 million lower than the same period in 2014/15 and $5 million lower than the 2013/14 period. This reduction is due to a business-wide focus on identifying efficiencies and cost-savings.
The Board has declared an interim dividend of $64.8 million, representing 40 per cent of the dividend forecast in the 2015/16 Statement of Corporate Intent.
Chairman Mark Verbiest said that a continuing focus on tight cost control over the last six months has seen the organisation perform well despite a new, challenging operating environment.
“With a lower allowable rate of return, challenging efficiency targets and more comprehensive and complex incentive arrangements, it’s pleasing that we are on track to at least achieve all of our Statement of Corporate Intent financial targets at the end of the year.”
“Our transformation efforts and implementation of operational efficiencies will continue, with a critical focus on delivering reliable transmission services to our customers at an appropriate price point, while also delivering an effective and efficient System Operator service.”
Transpower’s half year report will be published once it is tabled in Parliament.
For further information please contact: Rebecca Wilson, Corporate Communications Manager, 04 590 6695; 021 578 608