New Zealand Gazette – 1996 – No. 173

Page 4572

✨ Financial Performance Measures



4572 NEW ZEALAND GAZETTE No. 173

TRANS POWER NEW ZEALAND LIMITED

REGULATION 14, 13 AND PART II OF THE FIRST SCHEDULE OF THE

ELECTRICITY (INFORMATION DISCLOSURE) REGULATIONS 1994

Financial Performance Measures

a) Accounting return on total assets, being earnings before interest and tax divided by average total funds employed;

12 months 30 June 1996 12 months 30 June 1995 12 months 30 June 1994
Earnings before interest and tax 249,962,000 231,334,000 219,778,000
Average total funds employed 2,801,854,500 2,822,542,000 2,841,695,000
Accounting return on total assets 8.9% 8.2% 7.7%

In 1994 total funds employed included Works Under Construction, giving an Accounting Return on Total Assets of 7.5%. Works Under Construction is now excluded to align the definition with an economic view of operating capital employed, as interest is capitalised on the Works Under Construction balance.

b) Accounting return on equity, being net profit after tax, divided by average total shareholders funds:

12 months 30 June 1996 12 months 30 June 1995 12 months 30 June 1994
Net profit after tax 96,395,000 84,523,000 102,017,000
Average total shareholders funds 1,302,536,500 1,228,540,000 1,251,674,000
Accounting return on equity 7.4% 6.9% 8.2%

c) Accounting rate of profit, which shall be calculated in accordance with the following formula:

$$\frac{a - b - c + d}{e}$$

12 months 30 June 1996 12 months 30 June 1995 12 months 30 June 1994
a Earnings before interest and tax 249,962,000 231,334,000 219,778,000
b Cash tax 32,878,000 25,506,000 15,890,000
c Interest tax shield 36,474,570 40,690,000 35,822,000
d Revaluations 21,282,000 59,664,000 -
e Average total funds employed, minus half the amount of revaluations. 2,791,213,500 2,792,710,000 2,841,695,000
Accounting rate of profit 7.2% 8.0% 5.9%

As noted under a) above, the definition of total funds employed has been changed. The percentage previously reported for the 12 months ended 30 June 1994 was 5.8%.

Efficiency performance measures

a) Direct line costs per kilometre, which shall be calculated in accordance with the following formula:

$$\frac{a}{b}$$

12 months 30 June 1996 12 months 30 June 1995 12 months 30 June 1994
a is direct expenditure (in dollars): and 116,444,000 119,878,000 125,613,000
b is system length (in kilometres); 17,739 17,626 17,629
Direct line costs per kilometre $6,564 $6,801 $7,125

In 1994 the infrastructure asset service potential adjustment determined in respect of transmission lines was included within the definition of direct expenditure and direct leases and rental costs were excluded. In addition, in 1994 and 1995, system length was incorrectly defined. System length is now correctly reported as the average total circuit length of electric lines which form part of the system including the HVDC cables. Direct leases and rental costs are now also correctly reported. The direct line costs per kilometre previously reported were $9,521 and $11,007 for 30 June 1995 and 1994 respectively.



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✨ LLM interpretation of page content

🏭 Financial Performance Measures for Trans Power New Zealand Limited (continued from previous page)

🏭 Trade, Customs & Industry
Accounting return, Earnings, Profit, Efficiency, Direct line costs