Power company TrustPower has reported a 4 per cent fall in annual profits, caused in part by exposure to high wholesale electricity prices.
The Tauranga based company, which both generates and retails electricity, reported an after-tax operating surplus of $98.1 million for the year ended March 31, downfrom $102.4 million a year earlier.
It has also announced a 15 cent per share dividend and a five million share buyback plan.
Revenue for the year rose 9 per cent to $681.5 million, as a result of higher prices for customers paying spot market prices.
The amount of electricity sold during the year fell to 4540 gigawatt hours (GWh), from 4575 a year earlier, while customer numbers rose 3,000 to 222,000.
Generation production rose 4 per cent to 2018 GWh.
"Taking into account the significant shortfall in production from the company's own generation assets and high wholesale prices for the final quarter of the financial year, the result was satisfactory and again demonstrates that the company's trading and risk management practices are sound," said chairman Bruce Harker.
Low hydro lake levels heading into winter have pushed up spot power prices.
Operating expenses, including energy and line costs, rose 10 per cent, primarily driven by higher wholesale electricity costs, and operating cash flow was steady at $161 million.
Hydro production was down around 220 GWh, or 13 per cent on long term average.
Wind production was up 272 GWh due to nearly a full year's contribution from Stage III of the Tararua wind farm, but was down 8 per cent on expected long term average because of lower wind speeds in the second half of the year, and problems with some turbines.
"While it is too early to make predictions about the 2009 financial year, it is worth noting that the company remains in a satisfactory position to meet its customers' needs this winter," Harker said.
Shares in TrustPower, just over half-owned by listed infrastructure investor Infratil, were flat at $8.20.
The share buyback will take place on-market over six months. The company ssays it will be seeking shareholder approval at its next annual meeting for a similar sized annual share buyback.
