✨ Financial Analysis
29 NOVEMBER 2010 NEW ZEALAND GAZETTE, No. 159 4029
TRANSPOWER NEW ZEALAND LIMITED LINES BUSINESS
(g) Liquidity Analysis
The following table represents the cash flows The Transpower Lines Business expects to make/receive on its debt and derivative portfolio, and debtors and creditors. Foreign amounts are converted into New Zealand dollars using the period end exchange rate.
| Within one year $000 | One to two years $000 | Two to five years $000 | Greater than five years $000 | Total $000 | |
|---|---|---|---|---|---|
| 2010 | |||||
| Non derivative financial assets | |||||
| Trade and other receivables | 61,663 | 521 | 1,560 | 7,329 | 71,073 |
| Current tax asset | 5,202 | - | - | - | 5,202 |
| External investment | - | - | - | - | - |
| Principal | 0 | - | 0 | 0 | - |
| Interest receipts | - | - | - | - | - |
| Total | 66,865 | 521 | 1,560 | 7,329 | 76,275 |
| Non derivative financial liabilities |
| Trade and other payables | 88,150 | 885 | 1,004 | 596 | 90,635 |
| Finance lease liabilities | 133 | 127 | 346 | 696 | 1,302 |
| External borrowings |
| Principal | (129,000) | (252,886) | (400,125) | (668,369) | (1,450,180)|
| Interest payments | (61,542) | (57,888) | (148,514) | (140,072) | (406,016) |
| | (102,259) | (309,562) | (545,289) | (807,149) | (1,764,259)|
| Derivatives contracts - receipts |
| | 110,293 | 375,167 | 745,585 | 493,960 | 1,725,005 |
| Derivative contracts - payments | (149,429) | (424,535) | (843,590) | (608,878) | (2,026,432)|
| | (39,136) | (49,368) | (98,005) | (114,918) | (301,427) |
| Within one year $000 | One to two years $000 | Two to five years $000 | Greater than five years $000 | Total $000 | |
|---|---|---|---|---|---|
| 2009 | |||||
| Non derivative financial assets | |||||
| Trade and other receivables | 57,798 | 656 | - | - | 58,454 |
| Non derivative financial liabilities |
| Trade and other payables | 76,656 | 2,723 | - | - | 79,379 |
| Current tax liability | 13,788 | - | - | - | 13,788 |
| Finance lease liabilities | 197 | 583 | 836 | - | 1,616 |
| External borrowings |
| Principal | (130,000) | (100,000) | (245,761) | (778,369) | (1,254,130)|
| Interest payments | (52,894) | (49,394) | (120,192) | (138,349) | (360,829) |
| | (92,253) | (146,088) | (365,117) | (916,718) | (1,520,176)|
| Derivatives contracts - receipts |
| | 92,672 | 94,799 | 540,214 | 905,126 | 1,632,811 |
| Derivative contracts - payments | (120,611) | (134,423) | (692,466) | (968,349) | (1,915,849)|
| | (27,939) | (39,624) | (152,252) | (63,223) | (283,038) |
(h) Sensitivity Analysis
Currency risk
Group policy (section b) is to hedge all foreign denominated debt and committed foreign purchases greater than $1 million (New Zealand dollar equivalent).
All foreign debt is transferred back into New Zealand Dollars through Cross Currency Interest Rate Swaps and foreign purchases in excess of $1m have forward exchange contracts.
Interest rate risk
The Transpower Lines Business policy is to hedge between 80% and 100% of debt in year 1 and reducing amounts out to 15 years. Movements in market interest rates would therefore impact through Fair Value movement risk (refer below). Transpower does not hedge account for interest rate risk.
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NZ Gazette 2010, No 159
✨ LLM interpretation of page content
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Transpower New Zealand Limited Financial Statements
(continued from previous page)
🏭 Trade, Customs & IndustryFinancial Risks, Interest Rate Swaps, Basis Swaps, Interest Rate Options, Foreign Exchange Forward Contracts, Notional Gross Contract Amounts, Maturity Banding, Currency Risk, Hedging, Financial Instruments