Transpower half-year operating surplus drops

Friday 18th February 2011

Transpower has reported a drop in operating surplus and revenue for the six months to December 2010.

Transpower owns and operates New Zealand's high-voltage electricity transmission grid.

Operating surplus, after tax and before movements in the fair value of financial instruments and debt, was $80.4 million, compared to $87.6 million the same time the previous year.

Operating revenue dropped 5% to $360 million, from last year's $379.6 million.

However, $379.6 million included a one-off inclusion of remaining income from a 2003 cross border lease of $27.8 million.

Transpower chairman Mark Verbiest said operating surplus would be reinvested in its capital investment programme.

The company had secured approvals for three new projects, estimated to cost over $350 million, which were designed to the company's assets more efficiently instead of building major new lines.

Over the next six months, Transpower's would continue to focus on maintaining its assets, using new technologies that will help make the most of New Zealand's investment in the grid, and the delivery of its capital works programme.

Transpower's full half year result will be reported after it has been tabled in Parliament in early March.

Earlier this month, the company released its Transmission Tomorrow document, which considers how it will develop and operate the national grid in the future.

Transmission Tomorrow indicated an increasing demand for electricity and the need for a strong and reliable transmission grid.

"We must ensure that the grid can meet the country's needs while minimising the need for new investment, especially where this would extend our current footprint," Verbiest said.

"Our major build programme underway will contribute towards this, and we've made good progress over the last six months on all of our major projects."

NZPA

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