6 Nov 2017

Trustpower half year profit surges

2:11 pm on 6 November 2017

A wet winter has delivered Tauranga-based power company, Trustpower, a bumper rise in its first half profit.

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Photo: 123rf

The net profit for the six months ended September was $82 million, up 82 percent on the year before.

Revenue was up nearly 4 percent to $520m, while expenses fell almost 8 percent to $361m, because it was cheaper to generate power while it had higher margins in selling its surplus.

The chief executive, Vince Hawksworth, said the company also increased its number of customers, especially those subscribing for more than one service, such as adding internet or gas connections to an electricity supply.

"Our multi‐product retail business strategy bundling life's essential utilities including power, gas, internet and phone, is gaining momentum.

"About 80 percent of new customers who join Trustpower now purchase more than one product."

He said the second half of the year was expected to be more subdued with better weather meaning less power usage.

Trustpower has a network of 38 small scale hydro stations spread throughout the country as well as three in Australia, which are currently under review.

It's reaffirmed its forecast for a full year underlying profit of between $255-$270m.

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