SP AusNet reveals profit spikes on price hikes
Energy utility company SP AusNet has reported that its full year net profit after tax (NPAT) jumped by 42.3 percent or $209 million in the March quarter as it cited that boosted activity from its new commercial arm, price increases and additional clients fuelled the recorded gain.
The electricity and gas distribution company, which also operates Victoria's high voltage power network, said that its overall revenue had also increased by 14 percent to $1.33 billion while its underlying NPAT growth for this year had an upswing movement of 17.9 percent.
SP AusNet attributed the growth to its $43.3 million non-cash impairment booked in 2009 for write downs on meters that the company had replaced then, citing at the same time that its new commercial arm, Select Solutions, brought increasing revenues by reconciling the company's in placed services into a single division.
The company said that Select Solutions beehive activities resulted not only to better income realisation but also ushered "a combination of regulated price adjustments, an increase in customer connections and customer contributions."
SP AusNet also revealed that operating costs this year reached $789.8 million, which is 11 percent higher compared last year and still excluding finance costs and abnormal items. It also reported a decline in management service fees of $25.9 million but this has been largely written off by increases in other operating expenditures.
The energy company stressed that organic growth in regulated assets is stable with anticipated high inflows of demand for energy infrastructure from housing development build ups around its distribution network area.
Over the long haul, SP AusNet is also upbeat that "new wind farm and gas-fired generation connections on the transmission network will also ensure growth in SP AusNet's asset base."
The company is forecasting that capital expenditure in fiscal 2011 will be five percent higher compared to this year as SP AusNet shares were trading at 89.5 cents, upped by 1.7 percent as of 1043 AEST.