TrustPower has reported after-tax profit rose 14% to $119.4 million in the year ended March 31 on a 3% fall in revenue.
The company said significant wholesale and retail electricity price rises have been driven initially by the end of the era of cheap gas and more recently by a need to cover the cost of moving to renewable generation.
The rises will moderate somewhat but price rises above inflation are still likely for a period because of the increasing long run marginal cost of new generation.
Earnings after tax, excluding fair value movements on financial instruments and impairment charges, were $116.8m, down from $118.8m last year. The reduction reflected higher depreciation charges on revalued generation assets.
Earnings before interest, tax, depreciation, amortisation, fair value movements of financial instruments and asset impairments rose 5 percent to $273.9m.
Operating revenue fell 3 percent to $759.3m as a result of lower energy prices charged to customers paying spot market prices.
Operating expenses, including energy and line costs, decreased 7 percent because of lower wholesale electricity costs. Network distribution costs increased by 10 percent.
Total electricity volume sold by the company in New Zealand was 4103 GWh compared with 4032 GWh the previous year.
Customer numbers decreased by 2000 to 225,000 as at March 31, 2010.
The company declared a final dividend of 19c per share, payable on June 11.
The company paid tribute to director Sir Ron Carter who advised he will not be seeking re-election to the board at the annual meeting.
The current New Zealand hydro storage position should ensure a comfortable level of electricity supply during the 2010 winter.
Storage is above average levels for this time of year and TrustPower's hydro storage lakes are in a similar position, but low rainfall is affecting North Island hydro production.
