Dunedin City Holdings Ltd has more than tripled its after-tax profit over the past financial year.
In its latest financial results, the company announced a net profit after tax of $12.8 million for the 2024 financial year, an increase of $9.5m from the 2023 result of $3.3m.
Dunedin City Holdings Ltd (DCHL) is an organisation that oversees the finances and sustainability of eight companies it owns on behalf of the Dunedin City Council (DCC) — Aurora Energy, City Forests, Delta Utility Services, Dunedin Railways, Dunedin Venues, Dunedin City Treasury and Dunedin Stadium Property along with a 50% shareholding in Dunedin International Airport Ltd.
DCHL chairman Tim Loan said in a statement he was pleased by the outcome, which was based on a strong result from Aurora Energy.
The lines company’s net profit after tax exceeded target by just under $8m, Mr Loan said.
This was mostly due to higher network use by consumers, higher capital contributions from customer-initiated works and lower-than-anticipated operating costs.
“We respect council’s decision to retain ownership of Aurora and we remain committed to achieving the best for Dunedin from its investments.
“We have been clear in our advice.
“Our investment in Aurora Energy will generate a regulated return and it will grow in value.
“However, ongoing capital expenditure will require funding, from both operating cash flows and substantial debt funding, which will restrict the company’s ability to pay dividends,” he said.
DCHL had invested heavily in the electricity distribution network, with capital expenditure of $420m across the past five years, Mr Loan said.
Aurora Energy’s capital expenditure of $110m in the 2024 financial year was funded by operating cash flows of $67m and a $43m increase in borrowings, with no dividend paid to DCHL.
DCHL distributed $16.9m to the council in the 2024 financial year, an increase from $11.4m in the prior year, which included $5.9m of interest on its shareholder advance.
Mr Loan said DCHL companies delivered some great outcomes for the community in the 2024 year.
After many months of hard work with Dunedin Airport, Mr Loan said they were “thrilled” to welcome international flights back to Dunedin next year.
Dunedin Railways had also lifted its passenger numbers significantly, by 9000 to 25,000, and the team was excited to be able to resume passenger services to Pukerangi in October.
Other highlights from the 2024 financial year included the Fifa Women’s World Cup — which attracted more than 64,000 attendees, including 18,600 visitors from outside Dunedin, over the six matches hosted by Forsyth Barr Stadium — and the P!nk Summer Carnival Concert which contributed $16.6m to the Dunedin economy.
