Unison delivers solid performance for 2023/24, declaring $17.25 million dividend
2024 Unison Annual Report
Unison has released its annual report for the 2023/24 year announcing an increased dividend of $17.25 million for its shareholder, the Hawke’s Bay Power Consumers’ Trust, up from $15.8 million last year. The Trust holds all the shares in Unison on behalf of consumers connected to its electricity network in Hawke's Bay.
Unison reported a net profit after tax at $28.7 million for the financial year – a positive result despite the challenges of inflation, higher interest rates, regulatory change, and restoration of Unison’s network post-Cyclone Gabrielle.
Capital contributions relating to network extensions driven by customer demand were up $3.0 million on the prior year at $14.7 million. Capital expenditure of $86.3 million, up $1.9 million on the prior year, represents a new record for network investment. This investment includes significant customer-initiated capital expenditure to support continued demand from the commercial sector alongside network renewals such as the large substation upgrade in Camberley.
Earnings (before interest, tax and depreciation) from Unison’s unregulated subsidiaries increased to $28.1 million, supported by the addition of PBA subsidiary Magnetic Power Services to the Unison Group in April 2023.
Regulated lines revenue for the year was $146.0 million, a $0.6 million decrease on the prior year, reflecting several factors including reduced consumption within Hawke’s Bay’s commercial sector following the cyclone.
Unison Group Chair, Philip Hocquard, said the Board was pleased with Unison’s results.
“Unison delivered a robust performance this year despite many challenges, including post-cyclone recovery and inflation. The Board is delighted to declare an increased dividend for the consumers of Hawke’s Bay.”
The report details significant progress in recovering the Hawke’s Bay network following Cyclone Gabrielle, while also enhancing resilience across Unison’s network through increased investment in digital innovation.
Supporting regional growth and customer sustainability goals continues to be a focus, with 767 new solar or distributed generation connections to Unison’s network and numerous projects initiated or advanced to support commercial customer growth and decarbonisation.
Mr Hocquard, who retires from his role as Director this month, considers the future of Unison to be very bright.
“It’s been an honour to support Unison’s growth and success in my time as Director and in my role as Chair of the Unison Board.
“Unison is well-positioned to face the challenges of the future and plays a key role in enabling our regions, our communities, and our commercial sector’s transition to an electric future. With a fresh vision and strategic direction firmly in place I look forward to seeing Unison’s continued success in the future.”
“The Board thanks the Hawke’s Bay Power Consumers’ Trustees for the valuable role they play in helping ensure Unison’s ongoing success and sustainability.”
Another highlight from this year’s report is the sale of UnisonFibre. This strategic divestment will allow Unison to focus on its core strengths, enhancing performance in its specialist electricity companies to deliver greater value for its customers and shareholder.
Unison Group Chief Executive, Jaun Park, is pleased with Unison’s performance following his first year at the helm.
“It’s been another significant year for Unison and our regions, and I’m pleased to report an increased dividend for the power consumers of Hawke’s Bay.
“This year marked a strategic turning point for Unison and our group of companies as we farewelled UnisonFibre after nearly 15 years of growth as part of a strategic reset. Moving forward we have doubled down on our commitment to lead a sustainable energy future by leveraging the strengths and expertise across Unison Group’s core specialist electricity companies.”
“With the commitment of our people, the guidance of our Board and support from our shareholder, we are ready to tackle future challenges and capitalise on the opportunities presented by decarbonisation, while continuing our 100-year legacy of delivering value to our customers, communities, and shareholder.”
To read Unison’s 2023/24 Annual Report visit www.unison.co.nz/annual-reports