Trustpower reported an operating profit of $218 million for the year, 5% higher than the previous corresponding period.
The profit, excluding demerger costs, was $235 million, or 12% higher than last year.
On October 30, 2016, Trustpower demerged into two separate groups - Trustpower Ltd (formerly Bay Energy) and Tilt Renewables. The results released yesterday showed Trustpower's actual performance since the demerger, together with its share of the combined group's results pre-demerger.
Trustpower chairman Paul Ridley-Smith said the company's performance, particularly over the past five months, had been pleasing.
The reported profit was $94 million, 37% higher than 2016. Underlying earnings after tax were $115 million, $31 million, or 36%, higher than the pcp.
The net debt to operating profit ratio of 3 was down from 3.5 at March 31 last year.
Forsyth Barr broker Damian Foster said the operating profit, excluding demerger costs, was $4 million ahead of his forecast and at the top of the guidance range.
Trustpower declared a fully tax-paid dividend of 17c per share, 1cps higher than his forecast, and indicated future dividends were likely to be fully imputed.
The Australian profit contribution was $31.5 million, $19.2 ahead of the pcp due to above average hydro generation and strong electricity prices in Australia.
''Looking ahead, Australia is unlikely to contribute the same amount. The 2017 financial year was abnormally good.''
New Zealand generation was 5% above average, helping the New Zealand performance by about $15 million, he said.
The full-year contribution from King Country Energy added about $11 million to the operating profit.
However, weak wholesale electricity prices and higher employee costs were negative factors, Mr Foster said.
''While this was a good result, much of it has come from above-average hydro generation in New Zealand and Australia.''
The outlook commentary was limited to statements Trustpower planned to continue pursuing growth, both organically and, where it made sense, through acquisition.
The company provided guidance for the first time as a result, indicating the 2018 operating profit would be between $215 millon and $235 million.
Forsyth Barr had a current forecast of $208 million, a current rating of neutral on the company and a target share price of $4.80. The shares last traded at $5.12, up 1.99%.
