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Powerco releases 2017 half-year results

Thursday, November 23, 2017

Powerco's Chair John Loughlin has announced the company's interim results for the six months to 30 September 2017.

The amount of energy (electricity and gas) conveyed across Powerco’s electricity and gas distribution networks increased 0.8%, when compared to the six months to 30 September 2016. Revenue was up $9.5 million to $256.6 million. Included in the revenue result was:

  • $65.2 million of transmission and other pass-through costs, up $4.3 million from the same period last year
  • $12.9 million of customer contributions to capital works, down $1.1 million from the same period last year

Earnings before interest expense, taxation, depreciation and fair value adjustments (EBITDAF) increased by $3.8 million to $144.4 million. This compares to $140.6 million for the six months to 30 September 2016 and $142.9 million for the six months to 30 September 2015. 

Net profit after tax was up $0.4 million to $70.4 million. This compares to $70.0 million for the six months to 30 September 2016 and $43.6 million for the six months to 30 September 2015. This includes an $11.0 million gain on the revaluation of financial derivative instruments related to Powerco’s debt obligations. Valuations of derivatives used to hedge these obligations flow through the profit and loss statement as either gains or losses, depending upon market movements. Powerco holds foreign currency loans and related hedges to expiry and, as such, the $11.0 million gain reported in this six month period will, except in extraordinary circumstances, never be realised by the company.

Underlying profit before tax (profit for the period excluding gains/losses on financial instruments) increased by $10.2 million to $63.7 million. This compares to $53.5 million for the six months to 30 September 2016 and $50.1 million for the six months to 30 September 2015.

Powerco increased investment in its core electricity and gas networks with capital expenditure of $83.1 million for the six months to the 30 September 2017. This compares to $77.8 million for the six months to 30 September 2016 and $63.9 million for the six months to 30 September 2015. 

Dividends for the six months to 30 September 2017 were $22.5 million. This compares to $23.7 million for the six months to 30 September 2016 and $25.7 million for the six months to 30 September 2015. 

Powerco remains of the opinion that both EBITDAF and profit before taxation, adjusted to remove the impact of unrealised gains and losses, are better measures of the operating performance of the company, showing a 2.7% year-on-year increase and a 19.0% increase respectively. The 2017 reported and underlying profits before taxation and reported and underlying profits for the period after tax are all increased by a $5.8 million one-off gain on sale of assets to New Zealand Windfarms Ltd. 

The table below shows how the company reconciled reported net profit after tax and underlying profit before tax for the six months ended 30 September 2017 and 30 September 2016.

powerco-interim-report-2017_financials-v2.pdf
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