Transpower has ‘solid’ performance in spite of challenges

Transpower net profit after tax (NPAT) dropped 24% to $127 million, its report shows for the financial year ending June 30, 2023 (FY23).

Operating revenue increased by 3.2% to $913 million while operating expenses rose 16% to $362 million – with $8.5 million of that related to Cyclone Gabrielle remediation costs and the balance related to other maintenance costs and employee costs, the company says.

It attributes the NPAT drop on the prior year mainly due to higher operating expenses, dismantling costs and lower gains from financial instrument fair value movements.

A final dividend of six cents per share or $72 million has been declared – representing the balance of the $120 million full-year dividend forecast in Transpower’s 2022/2023 Statement of Corporate Intent.

“Transpower has delivered solid financial performance over the last year in the face of some significant challenges including weather events and supply chain constraints,” says Transpower chair Dr Keith Turner.

“Cyclone Gabrielle was the most significant operational event for the national grid in the last 20 years and we are still considering the options for the long-term future of our Redclyffe substation which was inundated with flooding,” he explains.

“While the impacts of longer lead times and higher costs throughout the supply chain continue, Transpower has proactively worked with suppliers and service providers to deliver maintenance and capital programmes on time and as close to budget as possible.”

Turner says Transpower continues to be in a strong position to offer significant volumes of work in the years ahead, “particularly as we take steps to prepare for the electrification of New Zealand’s economy”.

That work and Transpower’s impact on Kiwi communities during the past year are included in the “Powering Aotearoa New Zealand” report.