DCHL Group Delivers Strong Annual Result

Dunedin (Monday, 30 September 2024) – A $9.5 million lift in group after tax profit year on year and cash distributions to DCC of $16.9 million are among the highlights in Dunedin City Holdings Limited’s latest financial results.

The DCHL Group has announced a net profit after tax of $12.8 million for the 2024 financial year, which represents an increase of $9.5 million from 2023.

DCHL Chairman Tim Loan says, “That’s a pleasing outcome, based on a strong result from Aurora Energy.

“Aurora Energy is performing well, which is a credit to the Aurora team. Significant investment has gone into the network in recent years and now the regulated return on that investment is reflected in improved profitability.”

Aurora Energy’s net profit after tax exceeded target by just under $8 million. This was mostly due to higher network use by consumers, higher capital contributions from customer-initiated works and lower than anticipated operating costs, Mr Loan says.

“We respect Council’s decision to retain ownership of Aurora and we remain committed to achieving the best for Dunedin from its investments.

“We have been clear in our advice. Our investment in Aurora Energy will generate a regulated return and it will grow in value. However, ongoing capital expenditure will require funding, from both operating cash flows and substantial debt funding, which will restrict the company’s ability to pay dividends.”

The company has invested heavily in the electricity distribution network, with capital expenditure of $420 million across the last five years, Mr Loan says.

Aurora Energy’s capital expenditure of $110 million in the 2024 financial year was funded by operating cash flows of $67 million and a $43 million increase in borrowings, with no dividend paid to DCHL.

Results from other commercial companies were modest, reflecting global economic challenges. The construction slowdown in China continued to impact on log prices achieved by City Forests. Inflation has been a challenge to achieving desired margins at Delta. Passenger numbers at Dunedin Airport were softer than expected as inflation and interest rates impacted travel demand.

DCHL distributed $16.9 million to DCC in the 2024 financial year, an increase from $11.4 million in the prior year. Distributions included $5.9 million of interest on its shareholder advance.

DCHL companies delivered some great outcomes for the community in the 2024 year, Mr Loan says.

“After many months of hard work from the team at Dunedin Airport, we are all thrilled to welcome international flights coming back to Dunedin next year.

“Dunedin Railways lifted passenger numbers to 25,000 in the 2024 year, an increase of 9,000 passengers year on year. The team is excited to resume passenger services to Pukerangi in October.”

DVML’s highlights included the FIFA Women’s World Cup. Forsyth Barr Stadium played host to six matches, attracting an attendance of over 64,000 people, including 18,600 visitors from outside Dunedin. In March, DVML also hosted the P!nk Summer Carnival Concert, which contributed $16.6m to the Dunedin economy.

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