PowerNet posted a $2.05million net profit for the year ended March 31, down slightly on the previous year’s $2.7million result.
The lower South Island power company looks after power assets in Southland, West Otago, Queenstown, Central Otago and Stewart Island on behalf of electricity network owners serving more than 70,000 customers.
In their annual report, chief executive Jason Franklin and chairman Don Nicolson acknowledged the impact Covid-19 had on the business but said despite those challenges, PowerNet had achieved its business goals for the year.
PowerNet’s overall turnover dropped by $12million to $197.3million, despite gaining about 1000 more customers than the previous year. The number of employees also dropped from 309 to 297.
One of the company’s priorities for the year was to future-proof the networks it managed, they said.
Much of that activity had been on projects to maintain and improve service levels and enhance network capacity.
PowerNet’s capital expenditure for 2020-21 fell by nearly $5million to $47.7million, while its maintenance expenditure increased by $500,000 to $27.1million.
PowerNet undertook a $4.3million project at Open Country Dairy’s Awarua factory in Southland, to supply electricity to the nutrition plant and boiler.
That involved designing and constructing a new 33 kilovolt (kV) and 11kV supply to a new substation at the factory.
PowerNet had also opened a new facility in Balclutha, which ‘‘redeveloped’’ its operation in South Otago, the report said.
It also built a depot in Lumsden which was now fully operational.
That project supported a $27.3million investment extending its 66kV electricity network across northern and central Southland.
PowerNet had signed a partnership agreement with Southern Equipment Centre to market its new pole grab innovation — safety equipment which supports and secures power poles while maintenance is carried out in challenging locations — to the New Zealand market.
