Transpower New Zealand today released its annual results for the 2012 financial year.
Earnings after tax, prior to net changes in the fair value of financial instruments, were $167 million (2011: $126 million). Prior year earnings were reduced by one-off charges, including a $19.7 million impairment on the North Island Grid Upgrade land portfolio.
Operating revenue was $794 million (2011: $737 million), an increase of $57 million, reflecting the commissioning of new investments in the grid.
Dividend payments recommenced, with a $110 million interim dividend paid to the Crown in March 2012. A further dividend payment of $205 million was declared by the Board today. This will be paid in September, bringing the total dividend for the 2012 financial year to $315 million. The dividend is, in part, a result of a capital structure review. Accordingly, next year’s dividend is expected to be lower.
Chairman Mark Verbiest said that the company had performed well over the past year, largely in line with planned expenditure and revenue forecasts.
“Over the past year there has been a significant focus on technology initiatives. These initiatives will be used to improve security and reliability of the grid, while deferring the need to build more lines,” said Mr Verbiest.
“A key technology is demand-side response – the disconnection of non-essential load as a tool to maintain supply immediately after losses of key transmission lines or equipment. We are implementing a new system that will make demand response an attractive commercial option for consumers.
"Our four major projects – the North Island Grid Upgrade (NIGU), HVDC Pole 3, North Auckland and Northland (NAaN) and Wairakei to Whakamaru Replacement Transmission Line – are well underway, with NIGU and HVDC Pole 3 due for commissioning within the next six months. These projects will result in a more reliable and resilient grid for New Zealanders.
"I am confident that the company is well placed to manage current operations, to deliver major projects and to meet the challenges that will arise in the future," said Mr Verbiest.