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Trustpower posts $97.6m profit for year

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Trustpower says it has made solid progress in a challenging year.

The electricity company profit after tax for the 2020 financial year is up five per cent to $97.6m.

But its operating earnings are down 16 per cent to $186m, retail earnings down by 45 per cent to $35.3m and generation earnings fell by 10 per cent to $154.2m.

Profit after tax includes a one-off gain of just over $16m from the sale of its legacy meter business.

The company has announced a final dividend of 15.5 cents per share, fully imputed, delivering a total ordinary dividend of 32.5 cents per share.

Trustpower says a number of factors have impacted on its financial performance, including less rainfall causing lower generation production, and warmer than average climate reducing customer demand.

It is predicting retail earnings in the current financial year to be between $190m and $215m based on lower generation volumes reflecting current below average lake storage levels.

The company says developing a forecast for the next 12 months during the early stages of the pandemic has proven challenging as there is material uncertainty surrounding the impact on the economy and Trustpower's profitability.

Trustpower says it recognises that the economic effects of COVID-19 will be widespread and it's discussing with other electricity companies and the Electricity Networks Association about how they can provide some financial assistance or relief for customers to help avoid disconnection.

RNZ.

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