YEAR IN REVIEW
FINANCIAL SUMMARY
Yarra Valley Water recorded a net profit after tax of
A final dividend of $24.3 million for the 2014-15 financial
$56.6 million in 2015-16. The net profit after tax result
year and a capital repatriation payment of $8.6 million for
is $5.8 million higher than the 2014-15 result and
the 2015-16 financial year were paid during the year. The
$26.0 million higher than budgeted. The additional profit
amount of the final dividend for the year ended 30 June 2016
was generated primarily as a result of increased water
will be determined after consultation between the Board,
consumption demand (residential customer usage 5.8%
the Water Minister and the Treasurer of Victoria.
increase and non-residential customer usage 7.4% increase
above budget). Other key factors contributing to the
During 2015-16, total assets have increased by $185 million
favourable annual profit against budget were:
as a result of the growth in infrastructure, property, plant
and equipment.
Higher water and sewer service charges revenue from
customer growth and trade waste volumetric charges
Total liabilities increased by $149 million in 2015-16 largely
from the identification of new trade waste customers.
as a result of additional borrowings of $162 million which
were used to fund capital investments for our water and
Growth in developer related activity, primarily customer
sewerage infrastructure. This growth in borrowings was
contributions and new metering connection products
significantly below the budgeted increase of $231 million.
and services revenue.
Increased cash flow from higher than planned revenues
primarily from water sales and developer related activity
Lower than budgeted borrowings due to additional cash
along with lower payments for infrastructure, property, plant
receipts, lower capital expenditure payments and the
and equipment and savings in finance charges has ensured
effective management of the debt portfolio to take
we have minimised the growth in our borrowing levels.
advantage of market conditions to decrease finance
costs in the short and long-term.
Capital expenditure of $262 million was incurred during
the year to renew, augment and upgrade water and sewer
infrastructure. Yarra Valley Water focuses on the efficient
and effective use of its capital expenditure to deliver the
planned outcomes through innovative management of
its capital program of works.
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YARRA VALLEY WATER ANNUAL REPORT 2015-16