Gisborne-based Eastland Group announced a record audited profit of $15.2 million for the year ended 31 March 2016 and said it is planning to spend more than $123 million on infrastructure in the region during the next five years.
Owned in entirety by the Eastland Community Trust, the specialist infrastructure company’s operations include Eastland Port, Gisborne Airport and Eastland Network – the electricity network for Gisborne, Wairoa, and the East Coast – as well as Eastland Generation, which produces electricity from hydro, diesel and geothermal plants.
“Every dollar we make is a dollar that will benefit our community,” says chief executive Matt Todd.
Todd says the company’s commitment to the Tairawhiti/Gisborne region was ongoing.
“Over the next five years, Eastland Group plans to invest $123.5 million in local infrastructure,” says Todd.
He says that in 2003 when the company bought Eastland Port, it had $80 million of assets and now, 13 years’ later, Eastland Group’s assets are worth $422 million, as a result of capital investment driven by increasing demand from customers.
“Our financial success has allowed us to increase our returns to the shareholder and has also enabled our clients – who are predominantly businesses – to operate efficiently – generating economic growth for our region. That’s something we are unashamedly proud of and something we aim to continue,” says Todd.
“The businesses we operate require a significant amount of up-front capital investment to earn returns over an extended period. While Eastland Group achieved a record profit of $15.2m million, up $1.1 million on 2015’s $14.1 million, we’re also very focused on ensuring our assets are well maintained and are fit for purpose,” he says.
Significant investments over the past twelve months included the completion of Eastland Port’s $12 million upper log yard.
“Our continued investment at the port aims to meet expected future demand from customers at the same time as we strive to improve both operating efficiency and safety,” says Todd.
A $2.5 million resealing project at Gisborne Airport’s runway in April 2015, finished in time for Eastland Group’s tenth-anniversary celebrations.
“We’ve been operating the airport since 1 April 2005, on lease from Gisborne District Council,” says Todd.
“Since that time, the council has remained the asset owner, but Eastland Group has operated, managed and developed the airport, investing over $5 million in capital projects as well as paying the council more than $1 million in rent.”
Other highlights of the year were the company’s decision to proceed with development of its Te Ahi O Maui geothermal project near Kawerau, a cornerstone investment in high-growth electricity business Flick Electric Co, and record export volumes of 2.3 million tonnes at Eastland Port.
“The transfer of Transpower’s Gisborne and Wairoa 110kV assets to Eastland Network on 31 March 2015, was a significant step towards Eastland Group’s growth aspirations,” says Todd.
“The network’s acquisition of the transmission assets helped increase its operating profit, albeit in the context of a regulatory environment that limits upside and a market that is still flat regarding connection and demand growth,” he says.
