Network Tasman Annual Result March 2019
Electricity lines company Network Tasman Limited achieved an operating surplus after tax of $9.7 million for the year ended 31 March 2019.
This year’s financial result reflects strong contributions from all of the company’s businesses including the core electricity, fibre and investment property business units.
Buoyant regional growth continued in Network Tasman’s electricity distribution area, with consumer connections increasing by 529 for the year (1.3%), while total electricity distributed through the system increased by 1.9% to 761 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 $120 million over the next ten years due to strong growth in both industrial and new residential sectors and a pro-active programme of maintenance and asset renewal to maintain a reliable supply to our consumers.
In the company’s Annual Report released today, Mr. McCliskie states that “We are now seeing new technologies becoming mainstream and economic viability becoming a reality. The Board maintains an open mind to funding research and development and engaging new technologies were necessary. As an example, to support projected EV uptake, we have recently completed an assessment of the impact EV growth will have on our network”.
Mr. McCliskie said that “With a balanced portfolio of regulated and non-regulated activities, a strong financial position and a dedicated team, Network Tasman remains well positioned to meet the needs of our customers and our shareholders into the future”.
Mr McCliskie noted that “Network Tasman now has 40,390 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”.
- Operating revenue: $51.6 million (2018: $50.7 million)
- Operating surplus: $9.7 million (2018: $10.5 million)
- Total assets: $246.4million (2018: $237.8 million)
- Net operating cash flow: $21.2 million (2018: $17.7 million)
- Total network costs per consumer: $452 (Target: $438)
- Total consumer connections: 40,390 (2018: 39,861)
About Network Tasman
Network Tasman owns and operates the electricity distribution network in the wider Nelson and Tasman areas, excluding Nelson Electricity’s supply area in Nelson city.
The Network Tasman electricity distribution network distributes power to approximately 40,000 consumer connections in an area of 10,800 km2 in the north-western corner of the South Island.
In addition to its principal activity, the company has interests in complementary businesses of fibre optic networks, property, 50% shareholdings in Nelson Electricity Limited and On Metering Limited and advanced metering on the Network Tasman network.
Network Tasman itself is wholly owned by the Network Tasman Trust.
Network Tasman’s mission is to operate low cost, open access networks that deliver outstanding reliability and efficiency while maintaining shareholder value.