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Aurora Energy profits have been slashed, and debt is climbing, as the company ramps up spending to fix its ageing network.

But Dunedin City Holdings Ltd chairman Graham Crombie says the outlook for the Dunedin City Council's group of companies remains ''positive'' for the years ahead.

The council-owned companies' annual reports, tabled at this week's full council meeting, showed the group had together recorded a net surplus of $15.5 million, down from $18.5 million last year.

Debt remained relatively static across most of the companies, up from $572 million to $609 million, while climbing more sharply on Aurora's books as the company rolled out reinvestment in its ageing network.

The company's debt has jumped by $63 million, to $254.5 million, as it ramped up capital spending by an extra $33.2 million, to $78.4 million, in the 2017-18 year.

The company's after-tax profit was also slashed, from $7.3 million in 2016-17 to just $425,000 in 2017-18, as the focus shifted to reinvestment.

It also meant there was no room within the company's balance sheet for dividend or subvention payments, which had together been worth $2.9 million the previous year.

Both the drop in profits, and the end of dividends, had been forecast in the company's statement of intent.

The same was true across the group, as total dividend, interest and subvention payments to the council - down from a high of $23.2 million in 2012 - remained at $5.9 million in 2017-18.

Mr Crombie said that was the ''prudent'' approach for now, while companies like Aurora reinvested, ''to ensure a balance between distributions and using internally-generated surpluses to fund reinvestment''.

''The ability of the group to maintain strong operational cashflows is important to meet future dividend and capital investment requirements.''

Elsewhere, highlights included another strong return by City Forests, which increased its after-tax profit from $20.1 million to $23.9 million, and managed a record $8 million dividend to DCHL, $3 million more than expected.

Dunedin International Airport Ltd increased its after-tax profit from $2.3 million to $3.4 million, helped by its busiest year on record.

Dunedin City Treasury Ltd, which recorded a $171,000 profit, up from $115,000, also negotiated a lower rate for subsidiaries' borrowings, saving $4.1 million across the group.

Dunedin Venues, which runs Forsyth Barr Stadium, also booked its second consecutive after-tax profit - and its largest - after finishing $602,000 in the black, up from $299,000 the previous year.

Dunedin Stadium Property Ltd, which owns the building, posted a $7.6 million after-tax operating loss, as budgeted, which Mr Crombie said ''recognised the depreciation charge on the stadium''.

Delta's profits were down, from $4.8 million to $3.78 million, even as it reduced its dividend payment from $2.5 million in 2016-17 to $1.75 million in 2017-18.

Dunedin Railways - renamed from Taieri Gorge Railway Ltd late last year - was the only company to record a loss, of $260,000, after storm damage in July 2017 cost it about $500,000.

By the numbers

Company, 2016-17 profit, 2017-18 profit

Dunedin City Holdings Ltd $18.5m, $15.5m (group)

Aurora Energy Ltd $7.3m, $425,000

Delta Utility Services Ltd $4.8m, $3.78m

City Forests Ltd $ $20.1m, $23.9m

Dunedin City Treasury Ltd $115,000, $171,000

Dunedin International Airport Ltd $2.3m, $3.4m 

Dunedin Railways Ltd $401,000, -$260,000

Dunedin Venues Ltd $299,000, $602,000

Dunedin Stadium Property -$8.2m, -$7.6m Ltd

chris.morris@odt.co.nz