TrustPower lifts profit, reduces hedging as spot prices soar

Friday 15th May 2009

TrustPower, the utility controlled by Infratil, lifted annual profit by 7.1% on increased electricity revenue after it reduced hedging while spot prices soared last year.

Full-year profit rose to $105.1 million, from $98.1 million the previous year, the company said in a statement. Operating revenue rose 15% to $785.4 million, outstripping an 11% rise in operating costs to $525.4 million. The company reduced its hedging as higher spot market prices meant it purchased less electricity during peak periods.

Operating revenue increased “as a result of higher energy prices charged to those customers paying spot market prices through the first half of the year,” said chairman Bruce Harker. Lower-than-average lake levels through to September “elevated wholesale electricity prices for a number of months.”

Electricity revenue rose 13% to $744.8 million, despite an 11% fall in volume sold to 4,032 gigawatt hours. The energy wholesaler and retailer will pay a final dividend of 17 NZ cents, for an annual payout of 33 cents, up 10% from the previous year.

The shares rose 0.5% to $7.60 on the NZX 50 index today.

TrustPower lifted its customer numbers by 2.3% to around 227,000.

Businesswire.co.nz

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