The Tauranga-headquartered company told the NZX this morning that its net surplus had climbed from NZ$61.5 million to the NZ$68.7 million on increased earnings before interest, tax, deprecation and amortisation (EBITDA) of NZ$149.5 million (NZ$139.8 million for the previous period).
Chairman Harold Titter said the third quarter saw a continuation of the below-average hydro lake storage levels and inflows that occurred during the first half of the 2005-06 financial year.
Consequently, TrustPower's generation assets produced about 15% less electricity – only 1403 GWh versus 1648 GWh for the prior nine-month period. Total electricity sold for the nine months was 3614 GWh (4456 GWh).
TrustPower experienced some of the lowest inflows on record into its South Island hydro generation catchments during November and early December. During the past three months the company’s average spot price paid for electricity was NZ$102 per MWh ($39 per MWh) and for the past nine months, NZ$84 per MWh (NZ$37 per MWh).
But with most hydro generation storage catchments receiving good inflows this month and with purchase contracts in place, TrustPower was well positioned to meet customer demand for the remainder of the financial year, said Titter.
Work on the NZ$185 million, 93MW third-stage expansion of the Tararua wind farm, outside of Palmerston North, had started earlier this month and, when completed in mid-2007, was expected to produce an additional 350 GWh per annum of power.
But TrustPower's two Australian wind farm projects were facing on-going delays due to various issues, according to Titter.
The proposed 40MW Myponga wind farm, south of Adelaide, was capable of meeting the generation license conditions proposed by the Essential Services Commission of South Australia (ESCOSA). But an acceptable power purchase agreement, which would require the renegotiation of key contracts, had not yet been concluded.
TrustPower was also interested in progressing the proposed 171MW Snowtown wind farm, northwest of Adelaide, but the preferred wind turbine supplier had so far been unable to meet some of ESCOSA’s required technical specifications.
Titter said TrustPower was still looking at ways to develop the Snowtown project, including re-tendering the supply of turbines, though he expected renegotiating turbine supply arrangements to be challenging, given the tight global supply conditions for manufacturers of wind turbines.
TrustPower would try to preserve its options with respect to the Myponga and Snowtown wind sites and to respond to any government initiatives to promote further renewable generation.
