Half Yearly Report

The report describes Transpower’s financial and operational performance for the six months to 31 December 2009.

The primary focus of the Board and management is on engineering and operational performance, in order to strengthen and secure the national transmission system as a platform for economic growth.

Half year results for announcement to the market.

Transpower’s operating surplus after tax, prior to movements in the fair value of financial instruments and debt, was $87.6 million for the first six months of the financial year 2009/10.  This compares to $67.5 million for the same period to December 2008. 

The report describes Transpower's financial and operational performance for the six months to 31 December 2008.

The primary focus of the Board and management remains on ensuring New Zealand has a robust and reliable national transmission system.

Transpower has embarked on a significant investment programme - both new build and refurbishment and renewal of existing assets - following a long period of very low investment. This is critically important for New Zealand as a growing population increases the demand for electricity, and sustainable generation is increasingly being built remote from load centres. Further, a robust and reliable grid is essential to an open and competitive electricity market and to grow the economy.

Transpower, the owner and operator of the national electricity grid, made good progress on planning and implementing necessary investment in the grid during the six months ending 31 December 2007.

The operating surplus after tax for the six months to December 2007 was $51 million, down $23.6 million on the $74.7 million achieved in the same period last year. This result reflects in part the costs of the Market Systems Project (MSP), which are not expected to be fully recovered from the Electricity Commission. The MSP project is critical to the electricity industry as a whole as it will provide improved ability to deal with the increased complexity of load growth and increasing amounts of renewable generation.

Transpower, the owner and operator of the national electricity grid, made considerable progress on planning and delivering a range of grid investment initiatives during the six months ending 31 December 2006 and has recorded a satisfactory financial result.

The surplus after tax for the six months to December 2006 was $61.5 million. $47.7 million was achieved in the same period last year. The result reflected a 4.1% increase in operating revenue to $316.5 million.  Colder weather in July/August 2006 drove peak demands above previous levels at many grid exit points resulting in higher payments from some of our customers

Transpower recorded a surplus after tax of $47.7 million for the six months ended 31 December 2005. This result is 38.3% lower than the $77.3 million achieved in the same period a year ago.

Operationally, despite running ever closer to the limits, the national grid continued to perform well. The availability of the network during the six month period was above the targets set in the Statement of Corporate Intent and unplanned supply interruptions were well within target.

A one-off benefit from a cross-border lease transaction boosted Transpower's half-yearly surplus. For the six months ended 31 December 2004 Transpower achieved a surplus after tax of $77.3 million, compared with $31.5 million in the same period a year ago.

A key focus during the six month period was progressing plans for new investment in the national grid to ensure it meets New Zealand's needs into the future.

Transpower achieved a surplus after tax of $31.5 million for the six months ended 31 December 2003. This result is $0.2 million lower than for the same six months in the previous year. Operationally, both the HVAC and HVDC systems exceeded the availability targets set out in the Statement of Corporate Intent.

The national grid continues to meet the needs of Transpower’s customers and the communities they serve. Ensuring that the national grid is capable of meeting New Zealand’s future needs was a key focus for Transpower during the period, with good progress made on planning for grid enhancement.

A good financial and operational performance was the highlight of the six month period to 31 December 2002. The six months under review also saw a continued focus from Transpower on the industry reform process that has now been underway for some years.

Transpower has serious concerns about the current direction of the proposed new industry arrangements. It intends to play its part towards ensuring that the national grid and the power system as a whole continues to meet the country’s electricity needs.

Transpower owns and operates New Zealand's high-voltage transmission grid. The six months under review saw Transpower return a strong financial performance with a new surplus after tax of $67.4 million. The performance of both transmission assets and system operation was again very good with all targets exceeded.

Transpower owns and operates New Zealand's high-voltage transmission grid. The six months to 31 December 2000 saw a continuation of Transpower's strong performance with a net surplus after tax of $59 million-this result is $5.3 million higher than for the six months to 31 December 1999.