Transpower releases annual results

Media release 14 October 2009
Transpower releases annual results

Transpower New Zealand Ltd today released its annual financial report for the 2008/2009 year.

The surplus after tax and before net changes in fair value gain/(loss) for the year ended 30 June 2009 was $135.8 million compared with the equivalent 2007/2008 surplus of $107.7 million. The principal reasons for the rise in profit from last year, were an increase in transmission revenue and a lower impairment charge on System Operator assets.

Transpower Chairman Wayne Brown said that although this year’s profit was an increase on last year, it was lower than forecast due to unforeseen HVDC reserve charges of $27.5 million which exceeded the level allowed for under the current Commerce Commission settlement.

“These charges are largely beyond our control and are attributed to us as owner of the HVDC interisland link. However, given the substantial investment programme ahead, it is unfortunate to experience a lower than forecast profit,” he said.

There are currently around 60 projects underway, including four major upgrade projects, which together represent investments over $2 billion dollars in the next 3 years.

Wayne Brown said that the increase in transmission revenue this year reflects the significant progress made in advancing necessary investment in the grid – including new projects, refurbishing and replacing our asset fleet, and enhancing our System Operator and telecommunications capabilities.

“Given the need to fund the extensive capital works programme, no dividend will be paid to the Government this year,” he said.

In addition to the major build programme underway, incorporating new generation technologies, such as wind, and meeting more exacting customer quality requirements are challenges also being addressed.

Wayne Brown said that a number of new technology platforms have been invested in that will allow more intelligent operation of the future transmission grid. The benefits include greater ability to monitor and operate grid equipment remotely and improved utilisation of existing transmission assets.

“The completion of the $70 million Market Systems Project (MSP), a major upgrade to the software and hardware supporting the electricity market and system operation functions, was a major milestone achieved this year. Substantial strides were also made towards completion of the Telecommunications and Networks Programme (TNP), a $150 million rebuilding of our communications system to our nationwide substations.

“2008/09 was a year that held many challenges for us. However, the company has a clear focus and strong commitment to ensuring that the National Grid receives the level of investment needed to meet New Zealand’s electricity needs looking out several decades,” he said.

ENDS

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