The company has also announced a proposed return of about $NZ85 million of capital to shareholders. Chairman Harold Titter said shareholder and legal approvals would be sought during the last quarter of the current financial year (to March 2004), with the intention of making the return during the first quarter of next financial year.

Earlier this month a new 10-year unsecured subordinated bond was offered to the market with the intention to raise approximately $NZ50 million to develop new generation capacity and achieve a more efficient capital structure.

"This increased use of debt funding reflects the maturing nature of the electricity industry and TrustPower's anticipation of solid earnings and investment opportunities going forward," Titter added.

The smallest of the top five power generators/retailers produced the unaudited profit result from total revenue of $NZ504.5 million ($NZ 467.0m for 2002).

Titter said this represented a strong performance for the last quarter on reduced sales revenue and generation output compared to the previous year. Electricity sales volumes for the nine months were 4279 GWh (2002 5011 GWh) and generation was 1366 GWh (2002 1356 GWh).

The second-stage $NZ60 million Tararua wind farm development (near Palmerston North) was making excellent progress, with the first turbines now fully commissioned. Total new generation would add 55 more turbines to the existing 48 and in total produce enough electricity to power about 33,000 homes.

The South Australia government, just before Christmas, granted TrustPower permission to build a 35MW wind farm at Myponga, 50km south of Adelaide and TrustPower was also seeking permission for a 70MW wind farm on the Barunga Range 170 km north of Adelaide. These two projects should be progressed over the next few months.

Titter said firming wholesale prices were allowing the company to achieve a more satisfactory return on assets, as well as increasing its efforts to bring new generation online.