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Powerco releases 2014 half-year results

Monday, November 24, 2014

Powerco announces another six months of stable and reliable performance.

Powerco’s Chair John Loughlin has announced the company’s interim results for the six months to 30 September 2014:

  1. The amount of energy (electricity and gas) conveyed across Powerco’s electricity and gas distribution networks was up 2.1%, when compared to the six months to 30 September 2013, which had included one of the warmest winters on record. Revenue was up $15.8 million to $233.2 million. Included in the revenue result was:
    • $57.6 million of transmission and other pass-through costs. Increases in transmission and other pass-through costs accounted for $5.1 million of the increase in revenue compared to the same period last year.
    • $7.8 million of customer contributions to capital works, up $1.1 million from the same period last year.
  2. Earnings before interest expense, taxation, depreciation and fair value adjustments (EBITDAF) increased by $12.6 million to $134.0 million. This compares to $121.4 million for the six months to 30 September 2013.
  3. Net profit after tax was up $16.2 million to $51.6 million. This compares to $35.4 million for the six months to 30 September 2013.
  4. Underlying profit before tax (profit for the period excluding gains/losses on financial instruments) increased by $8.3 million to $51.2 million. This compares to $42.9 million for the six months to 30 September 2013.
  5. Powerco increased investment in its core electricity and gas networks with capital expenditure of $61.8 million for the six months to the 30 September 2014. This compares to $53.7 million for the six months to 30 September 2013.
  6. Dividends for the six months to 30 September 2014 were $23.3 million. This compares to $27.5 million for the six months to 30 September 2013.

The table below shows how we reconcile reported net profit after tax and underlying profit before tax for the six months ending 30 September 2014 and 30 September 2013.

Looking ahead, Mr Loughlin noted with disappointment the Commerce Commission’s decision to change the WACC percentile. Mr Loughlin observed that the Commission’s decision to change the WACC percentile outside of a full Input Methodologies review and ahead of the scheduled review date had negatively impacted investor confidence in the regime. 

Click here for half-year financial results.

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