Leading listed energy provider Trustpower Ltd (NZX: TPW) gave a positive run down to shareholders at Monday’s annual general meeting.
The net profit after tax was $129 million for fiscal 2018, up 38% on the FY17 result, while operating earnings (EBITDAF) was $243 M, up $57 million or 30% on the previous year.
Retail earnings of $60 M, was 33% higher than the previous year.
Trustpower had a strong performance in both the retail and generation segments, delivering a total return to shareholders of 29%.
“It is particularly promising to see the strong retail result, as this represents a long term sustainable lift in profitability,” said Trustpower chairman Paul Ridley-Smith.
He said it was fitting that the share price was beginning to reflect the underlying value and growth potential of the company.
“We are well positioned to drive long-term sustainable value for investors.” A final dividend of 17 cents per share, fully imputed, was declared bringing the total dividend for the year to 34 cents per share.
Chief executive Vince Hawksworth said Trustpower’s retail earnings were a good indication the company has a strong underlying retail business, forming a solid platform for continued growth.
Ridley-Smith said: “Our three generation schemes in New South Wales have performed well, however, given their size and distance from New Zealand, the board considered that selling the Australian subsidiary was the best option for enhancing shareholder value.
Hawksworth told shareholders that despite strong competition, the multi-product retail business strategy bundling life’s essential utilities including power, gas, internet and phone, continued to deliver results.
“We are no longer a telecommunications start-up, but an established player with scale to compete with high quality internet service provision and network caching. For example, more customers are migrating to higher value internet plans with 52% of our telecommunication customers now on fibre.” Hawksworth said.
The retail division was centred around value creation for its customers with an emphasis on technology and customer services aligned to Trustpower’s core business.