Endeavour Energy Annual Performance Report - Parliament of New ...
Endeavour Energy Annual Performance Report - Parliament of New ...
Endeavour Energy Annual Performance Report - Parliament of New ...
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08<br />
MANAGEMENT<br />
DISCUSSION & ANALYSIS<br />
Financial results*<br />
2009–10<br />
Result<br />
2010–11<br />
SCI<br />
2010–11<br />
Result<br />
Variation<br />
to SCI<br />
Earnings before interest, tax, depreciation and<br />
amortisation (EBITDA) ($m) 589.0 654.8 711.6 56.8<br />
Earnings before interest and tax (EBIT) ($m) 439.3 488.4 546.9 58.5<br />
Operating pr<strong>of</strong>it before tax ($m) 251.6 290.9 354.3 63.4<br />
Operating pr<strong>of</strong>it after tax ($m) 179.0 243.6 244.7 1.1<br />
Dividend ($m) 142.6 163.1 156.8 -6.3<br />
Special Dividend ($m) 0.0 863.7 863.7 0.0<br />
Total Distribution<br />
(Dividend + Income Tax Expense) ($m) 215.3 1074.1 1130.1 56.0<br />
Return on assets (%) 9.5 9.9 10.8 0.9<br />
Return on equity (%) 17.3 20.9 20.5 -0.4<br />
Capital Expenditure ($m) 417.4 509.0 496.4 -12.6<br />
*Excludes the impact <strong>of</strong> the gain on sale <strong>of</strong> Retail net assets.<br />
Balance sheet<br />
<strong>Endeavour</strong> <strong>Energy</strong>’s total assets<br />
increased by $218.5 million<br />
compared to the previous year. The<br />
major contributing factors included<br />
an increase <strong>of</strong> $436.2 million in<br />
property, plant and equipment<br />
resulting from increased capital<br />
expenditure and system asset<br />
valuation outcomes. This was<br />
partly <strong>of</strong>fset by reductions in<br />
trade and other receivables<br />
($100.0 million), estimated revenue<br />
from unread meters ($78.6 million)<br />
and emission rights ($11.7 million),<br />
primarily resulting from the sale<br />
<strong>of</strong> Retail assets.<br />
Return on assets, calculated as EBIT<br />
(excluding the gain on sale <strong>of</strong> Retail<br />
net assets) divided by the average<br />
asset base, increased from 9.5% in<br />
2009–10 to 10.8% at 30 June 2011.<br />
EBIT increased by 24.5% while<br />
average assets increased by 9.2%<br />
as compared to the prior year.<br />
Total liabilities increased by<br />
$139.1 million compared to the<br />
previous year driven by an increase<br />
in borrowings (inclusive <strong>of</strong> discounts/<br />
premiums) <strong>of</strong> $203.2 million, primarily<br />
due to the need to fund the capital<br />
expenditure program. This was<br />
partly <strong>of</strong>fset by a reduction in trade<br />
and other payables in the amount <strong>of</strong><br />
$87.5 million primarily resulting from<br />
the sale <strong>of</strong> Retail net assets.<br />
Return on equity, calculated as<br />
pr<strong>of</strong>it after tax (excluding the gain<br />
on sale <strong>of</strong> retail net assets) divided<br />
by average equity, was 20.5%.<br />
This result increased from the<br />
2009–10 outcome <strong>of</strong> 17.3%, with a<br />
36.7% increase in pr<strong>of</strong>it after tax<br />
compared to an increase <strong>of</strong> 15.6%<br />
in average equity.<br />
Cash flows<br />
Cash and cash equivalents at the<br />
end <strong>of</strong> the financial year decreased<br />
by $27.1 million compared to the<br />
prior year. Net cash flows provided<br />
by operating activities for the year<br />
were $353.5 million, a decrease <strong>of</strong><br />
$46.9 million compared to 2009–10.<br />
This decrease was primarily driven<br />
by the sale <strong>of</strong> Retail net assets<br />
on 1 March 2011, following which<br />
retail business cash flows were no<br />
longer realised.<br />
Net cash flows from investing<br />
activities for the year were<br />
$433.9 million, a significant increase<br />
<strong>of</strong> $841.7 million compared to the<br />
prior year, primarily driven by net<br />
proceeds from the sale <strong>of</strong> Retail net<br />
assets amounting to $928.7 million.<br />
Net cash flows used in financing<br />
activities for the year were<br />
$814.5 million, an increase <strong>of</strong><br />
$840.4 million compared to 2009–10<br />
result, primarily due to payment<br />
<strong>of</strong> the special dividend from the<br />
sale <strong>of</strong> Retail net assets amounting<br />
to $863.7 million.<br />
Unused credit facilities as at<br />
30 June 2011 totalled $650.8 million.<br />
44