TrustPower posts healthy $23 mln h/y surplus

By NZPA

Thursday 31st October 2002

Tauranga-based electricity company TrustPower Ltd today posted an after tax surplus of $23.1 million for the six months ended September 30.

The unaudited result compares favourably with the $12.2 million loss recorded a year earlier, when the severe winter forced TrustPower to buy electricity on the spot market.

"The turnaround this year arises from more normal generating and trading conditions, a programme of tariff increases to better reflect the true costs of retailing electricity, and strong cost control," TrustPower said.

"While there has been very active competition for customers in a number of TrustPower's regions our emphasis on customer service and retention campaigns has resulted in an overall small net increase in customers."

TrustPower will pay an unimputed dividend of 12.5 cents per share -- more than double last year's 6 cent figure -- on December 20.

Sales revenue for the half year declined slightly to $325 million, from $357 million -- the result of larger customers paying a tariff based on the wholesale spot price of electricity rather than a fixed tariff.

The half year surplus included a write down of $1 million on the company's South Australia wind farm site due to a reduction in its assessed generation capacity.

During the period the company raised a total of $53.3 million through the issue of $29.3 million worth of five year bonds at 8.30 percent and $24 million of ten year bonds at 8.50 percent.

Looking ahead, TrustPower is "cautiously optimistic" that the pleasing trading performance of the first half will continue through to the full year.

Shares in TrustPower jumped 15c to $3.65 on the result -- a fresh high for the year.

The bulk of the company's shares are owned by Infratil, Alliant International NZ Ltd, The Australian Gas Light Co, and the unlisted Tauranga Energy Consumer Trust.

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