Revenue from NBN design and construction services has helped push SA Power Networks to a better result in the last financial year, its parent company’s latest report says.

Spark Infrastructure today released its results for the six months ended 30 June 2013, posting a 3.4 per cent increase in profit “based on solid operational results from SA Power Networks and CitiPower and Powercor (Victoria Power Networks)”.

Spark declared an interim distribution of 5.5 cents per security consistent with the 2013 full year distribution guidance of 11.0cps, up 4.8 per cent on 2012.

You might like

Archive

The one-legged guide to ageing well

Archive

Reserve Bank tipped to hold interest rates despite inflation fall

The company also re-affirmed guidance for 2014 and 2015 distribution growth of between 3-5 per cent per annum.

The company said electricity tariff increases will drive revenue forward.

“Offsetting flat volumes, we expect to see growing revenues … based on approved tariff increases as we move into the second half of the current regulatory periods,” Spark’s managing director Rick Francis said.

“This has already started in Victoria with the addition of successful appeal revenues, recovery of which commenced from 1 January 2013, while the South Australian business will recover its additional vegetation management costs and receive design and construction service revenue associated with the NBN from 2014.

“Spark Infrastructure refinanced its corporate facilities in March on favourable terms and conditions and has paid down a further $30.0 million of debt in the period, resulting in gearing at the Spark level of less than 1 per cent.

“Our balance sheet remains strongly positioned to support growth in the Asset Companies when it is required and to deal with any changes in business conditions.”

SA Power Networks was appointed as a Tier 1 provider to NBNCo in South Australia during the financial year.

It also gained approval for pass through of $39.8 million additional vegetation management costs.