Tauranga-based electricity generator and retailer TrustPower reported a six-month profit fall of 12 per cent because of "challenging" market conditions.
TrustPower's surplus after tax for the half year to September 30 was $63.8 million compared with $72.5 million for the same period last year.
Operating revenue fell 1 per cent to $403.5mwith 2141GWh of electricity sold compared with 2207GWh last year.
Customer numbers fell to 222,000 from 225,000 as at March 31.
TrustPower chairman Dr Bruce Harker said high hydro inflows and storage contributed to low spot electricity prices and competition for residential customers remained intense, particularly in the South Island.
He said North Island-based SOE generator/retailers reacted to the imposed asset swaps and long-term hedging arrangements required by the Ministerial Review by seeking to buy large numbers of South Island customers.
"This activity was expected and likely to continue in the near future," Dr Harker said. TrustPower countered the increased retail competition by running successful customer acquisition campaigns, as well as increasing sales to the commercial market.
Earnings before interest, tax, depreciation, amortisation and fair value movements on financial instruments (EBITDAF) decreased by 5 per cent to $147.7 million from $154.9 million in the previous year.
TrustPower declared an interim dividend of 19 per share, partially imputed to 13 a share, payable December 10 to shareholders on the register on November 26.
