✨ Financial Performance Measures
27 NOVEMBER 2006
NEW ZEALAND GAZETTE, No. 151
4399
HORIZON ENERGY DISTRIBUTION LIMITED
Requirement 14 - Financial and Efficiency Performance Measures
For the year ended 31 March 2006
| 2006 | 2005 | 2004 | 2003 | |
|---|---|---|---|---|
| 1) Financial Performance Measures | ||||
| (a) Return on Funds (ROF) | ① 14.39% | 11.73% | 14.77% | 15.90% |
| (b) Return on Equity (ROE) | ① 12.26% | 8.78% | 13.19% | 15.34% |
| (c) Return on Investment (ROI) | ① 9.00% | 7.04% ② | 27.45% | 9.97% |
① The higher Return Measures for 2006 reflects the one-off Award as detailed in Note 22.
The Company’s normalised ROI is 7.44% (after removing the $1.74m Arbitration Award). Inclusion of the net reduction in expenses of $0.66m (inclusion of the $1.74m Award less the refund and other related provisions of $1.08m) would reduce the ROI to 8.03%.
The Company’s normalised ROF is 12.82% (after removing the $1.74m Arbitration Award). Inclusion of the net reduction in expenses of $0.66m (inclusion of the $1.74m Award less the refund and other related provisions of $1.08m) would reduce the ROF to 13.42%.
The Company’s normalised ROE is 9.60% (after removing the $1.74m Arbitration Award). Inclusion of the net reduction in expenses of $0.66m (inclusion of the $1.74m Award less the refund and other related provisions of $1.08m) would reduce the ROE to 10.62%.
② The higher Return on Investment for the 2004 year is due to the revaluation of Fixed Assets.
| 2006 | 2005 | 2004 | 2003 | |
|---|---|---|---|---|
| 2) Efficiency Performance Measures | ||||
| (a) Direct Line Costs per kilometre | ④ $430 ③ | $929 | $677 | $608 |
| (b) Indirect Line Costs per Customer | ⑤ $78 | $81 | $69 | $65 |
③ The increase in direct line costs per kilometre for 2005 is attributable to increased maintenance resulting from damage caused by extreme weather events.
④ Direct line costs have been reduced by the treatment of the $1.43m decrease in expenditure associated resolution of the Arbitration Proceedings partially offset by increased maintenance costs associated with extreme weather events
⑤ Indirect costs per customer have been increased by one-off legal and consultants fees related to the successful Award as detailed in Note 22.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2006, No 151
Gazette.govt.nz —
NZ Gazette 2006, No 151
✨ LLM interpretation of page content
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Financial Performance Measures Derivation Table
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