Spark Infrastructure interim profit dims on higher operating costs
Spark Infrastructure has booked a drop in interim profit as its CEO hits out at the energy regulator.
Electricity network investor Spark Infrastructure saw interim net profit decline by 12 per cent on lower returns from its Victorian distribution businesses and higher operating costs.
Interim underlying net profit fell 12.2 per cent to $51.1 million from $58.3m but it reaffirmed dividend guidance for the 2019 financial year of at least 15c per share.
Spark (SKI), which owns stakes in electricity distribution networks in Victoria and South Australia and 15 per cent of NSW transmission grid owner TransGrid, delivered a modest 1.4 per cent lift in adjusted gross earnings to $426.4m.
Chief executive Rick Francis also hit out at the rate of returns set by the Australian Energy Regulator.
“Unfortunate there is a pressing need to revisit the new rate of return guideline which has already become outdated in a very short space of time due to the current uncertainty and volatility in the markets, and with the historically low levels of inflation and interest rates,” Mr Francis said.
At 10.27am (AEST), shares in Spark were down 1 cent, or 0.43 per cent, at $2.33.