Transpower announces half-year results

18 February 2011

Transpower today announced its financial results for the first six months of the year to 31 December 2010.

Operating surplus after tax, prior to movements in the fair value of financial instruments and debt, was $80.4 million. This compares to $87.6 million for the same period to December 2009.

Operating revenue for the first six months of the year decreased by 5 per cent to $360 million, from $379.6 million for the corresponding period last year. However, the $379.6 million last year included the one-time recognition of the remaining income from the 2003 cross border lease of $27.8 million.

Transpower Chairman Mark Verbiest said that the operating surplus continues to be reinvested into the capital investment programme.

“This month we released ‘Transmission Tomorrow’ - a look forward at how we will develop and operate the National Grid over the next 20 to 30 years, and beyond. We recognise the importance of developing a proactive long-term plan for meeting all possible scenarios that may eventuate. We must ensure that the grid can meet the country’s needs while minimising the need for new investment, especially where this would extend our current footprint.

“What Transmission Tomorrow tells us is that the future will see increasing demand for electricity – in some areas, demand may increase markedly – and therefore a strong and reliable transmission grid will be needed.

“Our major build programme underway will contribute towards this, and we’ve made good progress over the last six months on all of our major projects. We have also secured approvals for three new projects estimated to cost over $350 million – including two in the lower South Island. These three projects are designed to use our existing assets more efficiently rather than building major new lines.

“Over the next six months of the financial year, our focus will continue to be on maintaining our assets, using new technologies that will help make the most of New Zealand’s investment in the grid, and the delivery of our capital works programme. We look forward to 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 Parliament in early March 2011.

ENDS

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