Endeavour Energy Annual Performance Report - Parliament of New ...

Directors’ Report
For the yEAR ended 30 JuNE 2011
The Board of Directors of Endeavour
Energy (the Corporation), formerly
Integral Energy, have pleasure in
submitting the accounts of the
economic entity for the period
1 July 2010 to 30 June 2011, and the
independent audit report thereon.
1 General information
(a) Directors
The names of Directors in office at
any time during the year are shown
on page 40.
Details of meetings and attendance
by Directors are shown in the
Corporate Governance section
on page 39.
(b) Principal Activities
The principal activities of the
Corporation during the course of the
period ended 30 June 2011 were the
purchase, distribution and sale of
electricity, meter data provision and
maintenance, and the construction
and management of electricity
distribution assets.
On 14 December 2010, the former
Integral Energy received a Ministerial
Direction under section 20N(1) of
the State Owned Corporations Act
1989 in relation to the sale of its retail
net assets. On 21 February 2011
a further Ministerial Direction
under section 20N(1) of the State
Owned Corporations Act 1989 in
relation to affected retail employees
impacted by the sale of the retail
net assets. The Integral Energy retail
net assets, along with the Integral
Energy brand name, was sold on
1 March 2011, at which time activities
relating to the purchase and sale of
electricity ceased. Integral Energy
was renamed Endeavour Energy
following the sale of the Integral
Energy brand name.
2 Business review
(a) Operating Results
The after tax profit of the
Corporation for the year was
$1,004.0m (2010: $179.0m), including
a gain on the sale of the Retail net
assets in the amount of $759.3m.
3. other items
a State of Affairs
Endeavour Energy is a New
South Wales state-owned energy
corporation incorporated under the
Energy Services Corporation Act
1995 and operates within the terms
of the Electricity Supply Act 1995 on
behalf of its shareholder, the New
South Wales Government.
During the year the former Integral
Energy’s retail net assets, along with
the Integral Energy brand name
was sold, and activities relating to
the purchase and sale of electricity
subsequently ceased.
The financial statements for the
Corporation for the period ending
30 June 2011 are presented on
pages 49 to 91 inclusive.
(b) Events Subsequent to
Balance Date
There has not arisen, in the interval
between the end of the financial
period and the date of this report,
an event of a material and unusual
nature likely, in the opinion of the
Directors of the Corporation, to
affect significantly the operations
of the economic entity, the results
of those operations, or the state
of affairs of the economic entity,
in subsequent financial years.
(c) Likely Developments
The Corporation’s purpose is
encapsulated in the statement:
Everyday we deliver to our
communities the ability to live and
the energy to grow. Endeavour
Energy continues to remain focussed
on operating a safe, reliable and
sustainable network by maintaining
a strong commercial focus,
balancing commercial outcomes
whilst managing stakeholder and
community expectations, effectively
delivering the core business
processes that drive the business,
and fully harnessing the skills and
capabilities of our people through
a clear focus on organisational
alignment underpinned by the
values of the Corporation.
Further information about likely
developments in the operations of
the Corporation and the expected
results of those operations in
subsequent financial years has not
been included in this report as the
Directors believe, on reasonable
grounds, that to include such
information would be likely to
result in unreasonable prejudice
to the Corporation.
(d) Directors’ Benefits
During the period no Director of the
Corporation has received, or become
entitled to receive, any benefits
by reason of a contract made by
the Corporation or a related body
corporate with a Director, or with a
firm of which a Director is a member,
or with an entity in which a Director
has a substantial interest.
(e) Environmental Regulation
Performance
The Corporation’s environmental
and waste discharge obligations
are regulated under both State
and Federal Law. All environmental
performance obligations are
monitored by the Environmental
Steering Committee and subjected,
from time to time, to Government
agency audits and site inspections.
The Corporation has a policy of
at least complying, but in most
cases exceeding, its environment
performance obligations.
(f) Rounding of amounts
Amounts in the financial statements
have been rounded to the nearest
thousand dollars unless specifically
stated to be otherwise.
Signed in accordance with a
resolution of the Directors:
Vince Graham
Director 22 September 2011
Michael McLeod
Director 22 September 2011
Endeavour Energy Annual Performance Report 2010–11
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