Annual Report

26
Achieve the financial plan
Financial Results
2014/15
result
2014/15
SCI
Variation to
SCI
2013/14
result
Operating Revenue ($m) 3,173.5 3,002.1 171.4 3,299.6
EBIT ($m) 1,198.7 1,025.3 173.4 1,371.4
EBITDA ($m) 1,770.2 1,649.9 120.3 2,037.2
Net Profit After Tax ($m) 420.1 269.2 150.9 607.5
Dividend ($m) 413.0 404.2 8.8 381.7
Total Distributions to
Government ($m) 589.7 519.6 69.4 548.8
Return on Equity (%) 9.4 6.0 3.3 14.1
Capital Expenditure ($m) 630.7 1,219.0 (588.3) 821.9
Financial Highlights
Ausgrid achieved a Net Profit After Tax
(NPAT) of $420.1 million in FY14/15,
$150.9 million higher than budget and
$187.4 million lower than the previous
year’s result. The declining NPAT result
when compared to FY13/14 was due to
lower network revenues mainly due to lower
prices (2.8%), higher operating expenditure
mainly related to the April storms and
restructuring costs. Other non-energy
revenue was also lower mainly due to the
sale of Ausgrid’s 570 George Street Head
Office Building in 2013/14.
The higher than budgeted NPAT result was
primarily due to better than anticipated
performance from the network business,
mainly reflecting an overall favourable
energy volume variance and favourable
price variance, and lower depreciation and
borrowing costs resulting from lower than
planned capital expenditure incurred for
both 2013/14 and 2014/15.
In April 2014 the AER published a
transitional regulatory determination
and approved network charges to apply
for the FY 14/15.
The AER's final determination was published
in April 2015 and applied retrospectively
to 1 July 2014.
As a consequence of the AER's retrospective
reduction in network revenue, $409 million
of revenue collected from Ausgrid's
customers in the FY 14/15 is being returned
to customers through lower charges
from 1 July 2015.
Return on Shareholders’ funds
Total company assets were $16.1 billion as
at 30 June 2015 and the return on these
assets was 7.4 percent. Ausgrid achieved
a 9.4 percent return on equity which was
higher than the Statement of Corporate
Intent target of 6.0 percent reflecting the
higher net profit. Ausgrid’s distributions to
the NSW Government were $589.7 million
recognising the payment of $118.3 million
related to the sale of Ausgrid’s
570 George Street Head Office Building
and reflecting the dividend provided at year
end totalling $294.8 million and income
tax expense totalling $176.7 million.
Total capital expenditure of $630.7 million
was $588.3 million less than budget,
reflecting lower expenditure on system
assets, IT&T, fleet and non system
buildings. The lower than budgeted
capital expenditure was a result of the
continued detailed review of our capital
program as a result of the reductions in
energy demand and customer growth
experienced over the last couple of years.
Capital expenditure ($ millions)
(excluding capitalised interest)
11/12
10/11
12/13
1,689
13/14
1,577
689
13/14
1,278
14/15
608
14/15
420
822
631
Net profit after tax ($ millions)
10/11 11/12 12/13
351
326