Network Tasman Annual Result 2020
Electricity lines company Network Tasman Limited reported an operating surplus after tax of $11.0 million for the year ended 31 March 2020.
The Chairman of the company Mr John McCliskie noted that “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 641 for the year bringing the total number of connections to 41,031.
Mr. McCliskie said that “Network Tasman is well positioned to manage the challenges Covid-19 is having on the communities we serve. In response to Covid-19 the recent 4% price increase was returned to consumers via increased discount and the winter discount paid early. There remains uncertainty for the year ahead and the impacts of an expected recessionary period are being tracked closely to ensure we can continue to meet the needs of our customers and our shareholders into the future”.
Mr McCliskie noted that “as a consumer owned company, Network Tasman must balance our desire to maintain low line prices against the need to continue to invest in the resilience of our network. The company’s current Asset Management Plan forecasts expenditure of $127 million over the next ten years to provide for the growth in both industrial and new residential sectors and to pro-actively invest in a programme of maintenance and asset renewal of aging network assets.”
- Operating revenue: $48.3 million (2019: $51.6 million)
- Operating surplus: $11.0 million (2019: $9.7 million)
- Total assets: $252.3 million (2019: $246.4 million)
- Net operating cash flow: $14.9 million (2019: $21.2 million)
- Total network costs per consumer: $468 (Target: $465)
- Total consumer connections: 41,031 (2019: 40,390)
About Network Tasman
Network Tasman’s mission is to operate low cost, open access networks that deliver outstanding reliability and efficiency while maintaining shareholder value.
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 41,000 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.