Spark flags SA, Vic revenue gains

Utility investor Spark Infrastructure expects an uplift in fortunes, after posting a strong rise in profit.

Spark Infrastructure Chairman Doug McTaggart (left) and Chief Executive Rick Francis (right). Picture: Jane Dempster/The Australian.

Utility investor Spark Infrastructure has highlighted $806 million in revenue gains to be recovered over the next four years by its South Australian and Victorian electricity networks, after posting a near one-third increase in net profit.

Interim statutory net profit was $51.6 million, up 31 per cent against the previous corresponding period that was blighted by tax settlements with the ATO.

Spark will pay a 7.25c distribution per security — in line with an upgrade in June that added 2c a year to expected distributions. That followed moves to lower gearing at the SA Power Networks and Victoria Power Networks, in which it holds 49 per cent interests alongside Cheung Kong Infrastructure of Hong Kong.

Final determinations from the Australian Energy Regulator for the revenue those two businesses could recover up to 2020 were $626m and $180m respectively higher than the preliminary determination. That extra revenue would be recovered in the next four years Spark said.

Shares in Spark rose 4c to $2.51 at lunch time.