Trustpower’s first half profit increased as it produced more electricity at higher prices and benefited from an increase in the value of its electrical blankets.
Key figures for the semester ended in September:
- Net income after tax $ 115.1 million vs $ 33.6 million
- Underlying earnings $ 59 million vs. $ 52.7 million (excluding movements in electric hedges)
- Production volumes 1,000 GWh vs 945 GWh
- Underlying profit expected between $ 210 and $ 225 million (excluding cost of selling retail operations of approximately $ 9 million)
- Interim dividend 17 cents per share
The Tauranga-based power company saw a solid profit gain on higher production and sales of its bundled services.
Trustpower benefited from a 6% increase in output from its hydropower plants, which it sold at higher prices, taking generation revenues 15.6% to $ 106.4 million.
“Trustpower’s nationally dispersed flexible production program portfolio has been able to take advantage of weather events, contributing to increased operating profits,” said Managing Director David Prentice.
The soon to be divested retail business, which includes gas, mobile and broadband as well as electricity, saw operating profits drop to $ 15.8 million from $ 18 million. $ 3 million.
“Our multi-product retail business strategy of bringing together essential life utilities including electricity, gas, internet and telephone has been a huge success, delivering better returns and a longer lifespan. client.”
Trustpower has sold the retail business to Mercury Energy for $ 441 million, and it only needs court approval to complete the restructuring of the Tauranga Electricty Consumers Trust.
After that, Trustpower will rebrand itself as Manawa Energy and become a supplier of renewable electricity, although it has retained significant commercial and industrial customers.
Trustpower chairman Paul Ridley-Smith said the new company would focus on developing new renewable power generation capacity to meet the expected significant increase in demand.
He said Trustpower was in the early stages of examining two large-scale power generation projects, wind and solar, and ways to bring them into service by 2030 through partnerships, joint ventures and acquisitions.
“With demand for electricity expected to increase by 50-70% over the next 30 years through the electrification of transportation and industry, the potential of Manawa Energy is enormous and the company is well positioned to capitalize on opportunities offered by the market, ”said Ridley. Smith said.