Centralines delivers strong performance and extraordinary growth in 2018/19

Central Hawke’s Bay consumer-owned electricity distributor, Centralines Limited, has produced a robust annual result for the 2018/19 financial year and demonstrated its highest growth in a decade.

Centralines Chair, Jon Nichols, said this unprecedented growth has been supported by Centralines’ consistent delivery of a reliable electricity supply to Central Hawke’s Bay power consumers, enabling a solid return on investment for its shareholder, the Central Hawke’s Bay Consumers Power Trust.

“Centralines’ high-performing network has not only meant we surpassed the Commerce Commission’s regulatory targets for the quality and reliability of electricity supply to customers, it has contributed to business growth and the prosperity of our region through an increase in new connections.

“We are particularly pleased with these results which are a credit to Centralines’ tight-knit team, and the company’s asset management practices,” Mr Nichols said.

Centralines delivered another strong financial result this year, with total revenue (pre-discounts) of $15.9 million and a Net Profit After Tax of $3.3 million. During the year, the company paid out a dividend of $8.1 million that was declared as part of its annual results in the previous financial year.

“This was a record distribution to its shareholder – the power consumers of Central Hawke’s Bay – and meant consumers connected to the Centralines network on 31 May 2018 continued to share in the company’s success, receiving a $905 tax-paid distribution payment and a discount on their August electricity bill, averaging $160.00,” Mr Nichols said.

Central Hawke’s Bay Consumers Power Trust Chair, Alistair Setter, said the Trust is very pleased with this year’s results.
“These impressive results, and the growth the company has experienced this year, can be attributed to the successful strategies the Directors have put in place in recent years.

“Network reliability has again been outstanding, which is incredibly important for our consumers. We would like to acknowledge the dedication and professionalism of all the staff at Centralines for their contribution in achieving this," Mr Setter said.

Beyond providing a quality and reliable power supply, Mr Nichols adds that Centralines plays an important role in supporting the social and economic development of the region, with health and safety remaining paramount.

“Improving the safety of our people, customers and the community in which we live is at the forefront of everything we do to ensure no one is injured while working for Centralines, or because of our work in the public domain. We are pleased that there were no lost-time injuries this year in the key risk areas of working at heights, with electricity, or around heavy machinery.

“We believe it is crucial that Centralines engages and invests in the talents of its people, empowering them through training and development to meet the challenges and opportunities that a new energy future will bring. To harness new ideas and support the growth of Central Hawke’s Bay, we are pleased to provide local career opportunities and look forward to growing and developing our diverse and inclusive workforce in the coming financial year.

“Through sponsorship, Centralines continued to support many organisations that add to the wellbeing and strength of our rural community. We were proud to see the opening of Centralines Sports Park, which we believe will help in supporting Central Hawke’s Bay to be a great place to live and work,” Mr Nichols said.

Looking ahead, Mr Nichols said it is essential that Centralines continues to support its customers beyond ensuring the network meets their electricity needs, to powering a vibrant region that is well-positioned for growth.

“This will involve working towards reforming current network prices to reduce electricity costs for families at the highest risk of energy hardship, while enabling our customers to embrace new technologies and recognising the investment requirements needed to maintain a resilient, reliable network.

“We thank the Central Hawke’s Bay and rural communities for their support again this year and look forward to seeing Centralines contribute to a thriving region in the year ahead,” said Mr Nichols.

Key highlights for the 12 months to 31 March 2019:

• Total Revenue - $14.5 million
• EBITDA - $6.7 million
• Net Profit After Tax - $3.3 million
• Capital Expenditure - $5.7 million
• Discount Paid - $1.39 million

For full results, please see Centralines’ Annual Report on the website:
www.centralines.co.nz/annual-reports