Transpower Announces Half-Year Results

Transpower Announces Half-Year Results

Transpower today announced its financial results for the first six months of the year to 31 December 2009.

Operating surplus after tax, prior to movements in the fair value of financial instruments and debt, was $87.6 million. This compares to $67.5 million in the corresponding period of the previous financial year.

Operating revenue rose 11 per cent to $379.6 million, from $341.9 million for the corresponding period last year. This increase was in part due to higher transmission revenue of $326.2 million compared to $310.7 million for the corresponding period in 2008/09. It also recognises the receipt of the remaining income from the partial termination of the 2003 cross border lease arrangement of $27 million.

The results also reflect the expected sale value of properties on the route of the North Island Grid Upgrade Project which has been reduced by $18.6 million, reflecting recent falls in property values.

Transpower Chairman Wayne Brown said that the operating surplus continues to be reinvested into the capital investment programme which includes new build projects, technology platforms, and the refurbishment and replacement of existing assets.
“We will spend approximately $3.8 billion until the end of the 2015 financial year to help build greater capacity, reliability and capability into the National Grid in order to meet future electricity demand, as well as connect new generation to the Grid.”
“We’ve made good progress over the last six months. Capital expenditure was $239 million, an increase of $109 million over the corresponding period in the previous year ($130 million). The rise reflects the start of the significant build programme underway with around 60 projects in various stages of development or construction. Two of our major projects - the HVDC Pole 3 project and the North Island Grid Upgrade project - are now in construction.”

“In addition, we launched our Market Systems Project (MSP), a new technology platform to run the real-time power system. This will deliver wide-ranging benefits to the industry and consumers.”

“Over the next six months of the financial year, our focus will continue to be on maintaining our assets and implementation and delivery of our investment programme, and we will be working closely with our customers and stakeholders on achieving this,” he said.

Transpower’s full half year accounts will be published once they are tabled in the House in March 2010.

ENDS

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