Transpower New Zealand Limited Analysis

Overview

Transpower New Zealand Limited are a State Owned Enterprise, tasked with owning and operating New Zealand's National Grid - the network of high voltage transmission lines and substations that connect areas of generation with towns and cities across the country.

TRP issued Fixed Rated Bonds on the NZDX on 30 November 2011. The Bonds are set to mature on 30 November 2018.

Performance

The following information was extracted from Transpower New Zealand Limited's full year results, released 29 August 2025:

Transpower’s operating revenue increased by 6% to $986 million in line with expectations following the transition to regulatory control period (RCP4), effective 1 April 2025. The increase relates to higher costs, an increase in the Weighted Average Cost of Capital (WACC), and higher levels of investment.

Operating expenses were $420 million, a 9% or $35 million increase relative to the previous year, mainly due to higher maintenance, increased investigation work to support customer growth, and workforce costs as the business grows and builds the capacity needed to deliver an increased work programme.

Net profit after tax was $107 million, a 19% increase from the prior year, but a 14% drop after normalising for a one-off non-cash tax expense in 2024 of $34 million (relating to the removal of tax depreciation deductions on non-residential buildings).

A final dividend of 6.0 cents per share, or $72 million, has been declared, representing a total dividend for the year of $120 million. This represents an increase of $10 million over and above the full-year dividend forecast in Transpower’s 2024/2025 Statement of Corporate Intent.