Hydro profit hits $168m

HYDRO Tasmania recorded a profit of $168 million for the 2017-18 financial year, according to the state-owned energy company’s annual report.

Profits were well up on last year’s result of $20 million. Revenues rose from $1.5 billion to $1.75 billion.

Hydro will pay a dividend to the State Government of $80 million, up from the $12.3 million predicted, chairman Grant Every-Burns said, adding that the result was due to favourable trading conditions.

“Having posted a small profit last year, and a manageable loss the year before fuelled mostly by the energy supply challenge, I’m pleased to report this strong result. It means our returns to govern- ment will be greater than projected in the state budget, including a dividend of $80 million,” he said.

Mr Every-Burns said Hydro Tasmania’s net debt at June 30, 2018 was $703 million, a reduction of $35 million from the previous year.

Hydro chief executive Steve Davy took home $636,000 in salary, bonuses and other benefits last year, up 4.7 per cent, and was one of three Hydro employees to receive more than $400,000.

Energy Minister Guy Barnett said the result was a testament to the strength of the state’s energy sector.

“Hydro are progressing important projects which have the potential to deliver thousands of jobs and generate billions in investment in Tasmania,’’ he said..

“This includes work on Battery of the Nation, identifying 14 pumped hydro storage opportunities and investigating a $500 million upgrade of the Tarraleah Power Station.”

Mr Barnett said the result was achieved while maintaining an a healthy energy security position, with dam levels at 47.5 per cent this week.

State-owned power retailer Aurora Energy reported an after-tax profit of $13.2 million, on revenues of $982 million, down from $19.4 million last year.

Chief executive Rebecca Kardos said the below-budget result was in part due to it funding the $125 special pensioner energy bonus, which cost it $10 million.

Ms Kardos was paid $381,000 last financial year.