Centralines Produces Strong Result for 2016/17 Financial Year

31 July 2017 – Consumer-owned electricity distributor, Centralines, has produced another strong result for the 2016/17 financial year, delivering reliable network performance and a solid financial return for its shareholder, the Central Hawke’s Bay Consumers Power Trust.Key highlights for the 12 months to 31 March 2017:

• Total Revenue - $15.08 million
• Net Profit After Tax - $3.27 million
• Capital Expenditure - $1.73 million

While weather conditions were less favourable than last year, Centralines outperformed both the regulatory targets and its own higher corporate targets for the quality and reliability of electricity supply to customers.

Centralines Chairman, Jon Nichols said, "There is a shared sense of responsibility felt by the Board and staff about the vital role we play in powering a healthy and vibrant Central Hawke’s Bay.

"One of the most important ways we do this is by providing a high-quality and reliable electricity supply, which enables our community to do the things they need to around their homes and in their businesses. This year our customers again had power on average for 99.99 percent of the year.

"We’ve also delivered another solid financial result, which has enabled Centralines to provide another discount to consumers of $1.325 million," said Mr Nichols.

The discount was split between its 8,042 customers and equated to a discount on the average household’s electricity bill of around $120.

Total revenue for the year was favourable, as a result of higher line revenue and higher contracting revenue. Stringent cost management across capital and operational expenditure also contributed to a Net Profit After Tax position of $3.27 million.

Central Hawke’s Bay Consumer Power Trust Chairman, Alistair Setter, said, "The Trust is very pleased with this year’s results. The Directors have overseen an impressive result during the year and placed the company on an improving plane with the strategies they have put in place in recent years.

"Also, highly important to our consumers is the network reliability, which again has been outstanding. We would like to acknowledge the dedication and professionalism of all the staff at Centralines for this result," Mr Setter said.

Mr Nichols said Centralines continued to support a number of organisations throughout the year.

"Centralines is very aware that positively contributing to the health and vibrancy of the community goes beyond providing a reliable power supply, delivering strong returns and providing employment opportunities.

"It’s also about supporting those organisations and causes that help make Central Hawke’s Bay a great place to live and work."

Over the last year, Centralines has contributed to 51 organisations through donations or sponsorship in addition to its key sponsorships of the Hawke’s Bay Rescue Helicopter, the Waipukurau Community Heated Pool and the CHB Technology Centre, Waipawa.

"Looking ahead, our core focus remains on ensuring optimal returns for our consumer shareholders while balancing cost, risk and performance. Our thanks to the Central Hawke’s Bay and rural communities for their support again this year and we look forward to another successful year ahead," said Mr Nichols.

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For more information contact: Danny Gough Relationship Manager 021 739 461