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Split hits Trustpower's first-half profit

NZ NewswireNZ Newswire 6/11/2016 Jonathan Underhill

Trustpower, which spun out its Australian windfarms into a separately listed company, Tilt Renewables, on Oct. 31, posted a 7.6 percent decline in first-half profit on a demerged basis, in the face of rising operating expenses and costs related to the split.

Profit was $45 million in the six months ended Sept. 30, from $48.7m a year earlier, the Tauranga-based company said in a statement.

Revenue climbed to $501.6m from $474.8m.

The demerger created a separate company in Tilt that was valued at about $657m, based on the value of its shares on the NZX and ASX, which were distributed to existing shareholders.

Based on figured adjusted for the split, Trustpower's operating expenses rose to $392m from $354m a year earlier, driven by increases in line costs, generation production costs, wages and 'other expenses'.

Earnings included $8.7m of demerger expenses and one-time costs associated with the closure of the company's Energy Direct brand, it said on Monday.

Trustpower shares were unchanged at $4.79. The company declared an interim dividend of 16 cents a share, payable on Dec. 9, from 21 cents a year earlier when the company included its Australian windfarms.

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