Victorian energy "poles and wires" operator AusNet Services intends lifting dividends this year despite a hefty fall in profit.
Ausnet's full year profit for the year to March 31 dropped 87 per cent to $22.6 million, due largely to payments it made to settle tax disputes.
Outside of payments to the Australian Tax Office and other one-offs, including customer rebates and write-downs related to smart meters, the company said profit would have been $312.8 million, down 2.5 per cent but better than expected.
The energy infrastructure group declared a 4.18 cents a share dividend, 60 per cent franked, bringing the full year payout to 8.36 cents, the same as last year.
However it expects to increase this year's dividend to 8.53 cents, 75 per cent franked.
That would be dependent on the company's restructure plans going ahead, in which the current triple stapled group would be replaced with a simpler single entity.
Earnings and revenue increased in Ausnet's electricity distribution, which delivers power to consumers, due to price increases and despite volume falls.
Gas earnings and revenue were down, with prices also falling.
Earnings and revenue in the transmission business, delivering electricity from power plants to sub-stations, was also down.
The tax charges that weighed on the profit included $183.3 million over financing and rights to future income and $84.1 million over an intellectual property dispute.
AusNet said it expected capital expenditure in 2016 to be about $900 million, compared to $809 million in the last year and $922 million the previous year.
"AusNet Services continues to assess acquisition opportunities and other corporate transactions as they arise, along with pursuing opportunities for further organic growth in existing and related businesses," the company said.
The company's shares were down 1.5 cents, or one per cent, to $1.425 at noon.
TAX MAN AND METERS DRAG DOWN AUSNET
* Full year net profit of $22.6m, down 87pct from $178.3m in 2013-14
* Revenue of $1.83b, up 1.9pct from $1.79b
* Dividend of 4.18 cents per share, 60 per cent franked, unchanged.
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