Achievements

• Revenue over half a billion dollars for the first time ($504.7 million)
  
  
• After tax profit of $44.3 million
  
  
• Capital expenditure of $126.4 million, principally in asset refurbishment for increased reliability
  
  
• Returns to Government of $66.1 million
  

  -	dividend	$40.0 million
  -	income tax equivalent	$19.1 million
  -	rates equivalent	$2.9 million
  -	loan guarantee fee	$4.1 million

• Commencement of Basslink operation at 28 April 2006
  
  
• Roaring 40s joint venture with CLP Power Asia
  
  
• Reduction in the Lost Time Injury Frequency Rate to 1.3 per million hours worked (down from 3.2 in 2004/2005)
  
  
• Considerable improvement in staff engagement, as measured by the annual Staff Feedback Survey, positioning Hydro Tasmania among the better performing businesses nationally
  
  
• Slight increase in sustainability performance over the previous year’s
  
  
• Energy Supply Association of Australia’s award for sustainability reporting
  
  

Challenges

• Water storage levels at 22.7 per cent of full at the start of the 2005/2006 year
  
  
• $50 million expenditure on acquisition and installation of three 35 megawatt gas turbines
  
  
• Uncertainty over future of Australian wind farm developments
  
  
• Further embedding of sustainability principles into business processes, and improved sustainability reporting
  
  
• Expansion of Hydro Tasmania Consulting’s regional office network in Australia and overseas, to secure further external work