Dredge said the result reflects a business focus on the essentials – markets, plant performance and costs.

“It was achieved despite challenging market conditions for generators, including a decline in average spot market prices for electricity,” he said.

Tarong Energy is a Queensland Government-owned corporation. It employs about 350 people and generates about one quarter of Queensland’s electricity supply as well as supplying energy to the national electricity market.

Tarong Energy’s 100% owned and operated assets include the Tarong and Wivenhoe power stations, South Australia’s first wind farm at Starfish Hill and the South Australian wholesale gas trading business Terra Gas Trader. Tarong Energy also owns 50% of the Tarong North Power Station in a joint venture with the Tokyo Electric Power Company and Mitsui and Co Ltd.

Another wind farm is under construction at Mt Millar in South Australia and should be completed in early 2006.