Transpower Releases Half-Year Report

Media release 13 March 2009

Transpower Releases Half-Year Report

During the first six months of the financial year to 31 December 2008, Transpower continued with a significant investment programme to restore operation and maintenance margins and upgrade capacity to meet rising load.

Operating surplus after tax, prior to movements in the fair value of financial instruments and debt, was $67.5 million for the first six months of the financial year 2008/09. This compares to $53.3 million in the corresponding period of the previous financial year.

Operating revenue for the first six months of the year rose 7 per cent to $338.4 million, from $316.5 million for the corresponding period last year. This increase was largely due to higher transmission revenue of $310.7 million compared to $289.7 million for the corresponding period in 2007/08.

Transpower continues to reinvest the operating surplus into major upgrade projects under the arrangement with its shareholder, the Crown, to forgo dividend payments.

Major upgrade projects that are important to the security of the overall power system, are now in various stages of development or construction. They represent a total investment of around $2 billion. Nationally, Transpower has a total of over $3.8 billion of capital expenditure planned over the next five years.

Transpower Chairman Wayne Brown said the upgrade projects had made good progress, but noted the full benefits of the programme would not be achieved for several years.

“Transpower recognises that a robust and reliable grid is essential to the economy and our programme of investment will address the deteriorating trend in reliability performance.

“While we’re very pleased with the upgrade and new project work to date, we’re conscious there’s still a lot to do.”

ENDS

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