Dam fine results as Hydro Tasmania posts $168m profit

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

HYDRO Tasmania has 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 as revenue 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 the result was because of favourable trading conditions.

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“Hydro Tasmania also produced more large-scale generation certificates than budgeted and sold more electricity contracts relating to small business customers than expected,” he said.

“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 government will be greater than projected in the State Budget, including a dividend of $80 million.”

Australian Renewable Energy Agency CEO Ivor Frischknecht, left, and Hydro Tasmania CEO Steve Davy at the Cethana Power Station last year. Picture: CHRIS KIDD

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

Hydro CEO 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.”

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Mr Barnett said the result was achieved while maintaining 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.

Aurora CEO 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.