Network Tasman Annual Result March 2018

Electricity lines company Network Tasman Limited achieved an operating surplus after tax of $10.5 million for the year ended 31 March 2018. 

This year’s financial result is a consequence of strong contributions from all of the company’s businesses including the core electricity and fibre communications networks and investments in advanced meters and Nelson Electricity Limited. 

Solid growth continued in Network Tasman’s electricity distribution area, with consumer connections increasing by 562 for the year (1.4%), while total electricity distributed through the system increased by 1.4% to 747 GWh. 

Network Tasman Chairman, John McCliskie said that “our network is well-placed to support changes in electricity usage, the increased demand for electricity supply to the region and expected changes in new technologies”. The company’s current Asset Management Plan forecasts expenditure of $117 million over the next ten years. 

In the company’s Annual Report released today, Mr. McCliskie states that “We are now seeing new technologies becoming mainstream and economic viability closer to reality. The company is spending considerable amount of time identifying, researching and preparing for the impact and opportunities of these new technologies”. 

Mr. McCliskie said that “Network Tasman is well positioned to respond to the challenges ahead. The strong balance sheet, robust cash flows and a balanced portfolio of businesses position us well for the future”. 

Mr McCliskie noted that “Network Tasman now has 40,000 customers on our network. The region we serve continues to grow and Network Tasman is well placed to continue to meet demand into the future”. 

Additional facts: 

  • Operating revenue: $50.5 million (2017: $46.2 million)
  • Operating surplus: $10.5 million (2017: $8.0 million)
  • Total assets: $237.8 million (2017: $234.9 million)
  • Net operating cash flow: $17.7 million (2017: $13.8 million)
  • Total network costs per consumer: $443 (Target: $454)
  • Total consumer connections: 39,861 (2017: 39,299)