TrustPower first-half profit rises 15% on increased output, higher prices

Monday 31st October 2011

TrustPower, the utility controlled by Infratil, posted a 15 percent increase in first-half profit on revenue from its Snowtown wind farm, increased NZ production and higher wholesale electricity prices.

Profit rose to $68.8 million, or 21.8 cents a share, in the six months ended Sept. 30, from $59.7 million, or 18.9 cents, a year earlier, the company said in a statement today. Sales rose 6 percent to $426.6 million.

Power companies have been battling to win customers, cutting prices and making special offers to win sales. TrustPower’s total electricity customers fell to 218,000 at Sept. 30, from 221,000 at March 31 and the company said retail competition “remained intense” with customer switching “at historically high levels.”

Shares of TrustPower rose 0.4 percent to $7.20 and have declined 2.5 percent this year. The stock is rated a ‘hold’ based on a Reuters poll. Infratil, which owns 50.5 percent of TrustPower, gained 0.5 percent to $1.86.

The company generated 1,141 GWh of electricity in New Zealand in the first half, up 15 percent from a year earlier, reflecting increased hydro and wind production including 56 GWh from the Mahinerangi Wind Farm, it said. Total electricity sales in New Zealand fell to 2,137 GWh from 2,142 GWh.

The company will pay an interim dividend of 20 cents a share, up from 19 cents a year earlier.

(BusinessDesk)

BusinessDesk.co.nz

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