Consumer-owned electricity distributor, Centralines, has produced another sound result for the 2017/18 financial year, delivering reliable network performance and a strong financial return for its shareholder, the Central Hawke’s Bay Consumers Power Trust.
Key highlights for the 12 months to 31 March 2018:
• Total Revenue - $16.1 million
• EBITDA - $6.63 million
• Net Profit After Tax - $3.27 million
• Capital Expenditure - $1.67 million
• Total Discount - $1.34 million
• Dividend Declared - $8.1 million
Centralines Chairman, Jon Nichols said, “It’s been another busy and successful year for Centralines, producing strong financial results and delivering a reliable supply of electricity to Central Hawke’s Bay power consumers and shareholders”.
Health and Safety remains paramount to Centralines. We are pleased there were no lost-time injuries in the key risk areas of working at heights, with electricity, or around heavy machinery. “Keeping each other and our communities safe around the network is at the forefront of everything we do and we continue to increase our safety focus by investing in development programmes to further improve our commitment to ensuing staff get home safely at the end of every day” Mr Nichols said.
Total revenue was favourable, due to higher line revenue, and stringent cost management across capital and operational expenditure, contributing to a Net Profit After Tax of $3.27 million.
As a result, Centralines was able to provide a discount to consumers of $1.34 million and strong operational results meant Centralines also declared a fully imputed $8 million dividend to the Central Hawke’s Bay Consumers Power Trust.
Centralines outperformed the Commerce Commission’s regulatory targets for the quality and reliability of electricity supply to customers.
“We are particularly pleased with the results especially considering we are seeing an increase in significant weather events over time. Centralines has focused on improving the resilience of its network, investing in technology to locate faults and restore power faster, leveraging our management partner Unison’s smart network capability” said Mr Nichols.
Central Hawke’s Bay Consumers Power Trust Chair, Alistair Setter, said, “The Trust is very pleased with this year’s financial results. Also, highly important to our consumers is the network reliability, which again has been outstanding. We would like to acknowledge the dedicated and highly skilled office and field staff at Centralines for this result,” Mr Setter said.
During the financial year the company continued its strong support for the community, beyond providing a quality and reliable power supply.
“Centralines is very aware that positively contributing to the community goes beyond providing a reliable power supply, delivering strong returns and providing employment opportunities” Mr Nichols said.
“Centralines continued to support around 50 organisations throughout the year through donations or sponsorship in addition to our key sponsorships of the Hawke’s Bay Rescue Helicopter, the Waipukurau Community Heated Pool, the CHB Technology Centre Waipawa, and the multisport turf at Russell Park” he said.
“Looking ahead, our core focus remains on ensuring optimal returns for our consumer shareholders while balancing cost, risk and performance. The company is well placed for investment and growth opportunities that support the Central Hawke’s Bay economy” said Mr Nichols. Examples of this include looking at the use of solar generation, energy storage and other alternative technologies within a rural context to inform the company’s future strategy.
“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.
A low point in the year was the passing of Nick Story, who had been a Centralines Director since 2013. “He was a man of great business acumen and integrity who was well-respected and passionate about the community and he is missed both professionally and personally” said Mr Nichols.