2016-17 HIGHLIGHTS
CONTINUED
FINANCIAL SUMMARY
Capital expenditure of $234 million was incurred during
2016-17 primarily to renew, augment and upgrade water
Yarra Valley Water recorded a net profit after tax of $58.3
and sewer infrastructure. Yarra Valley Water focuses on the
million in 2016-17. The net profit after tax result is $1.8 million
efficient and effective use of its capital expenditure to deliver
higher than the 2015-16 result and $12.7 million higher than
the planned outcomes through innovative management of
budgeted. The additional profit above budget was generated
its capital program of works.
primarily as a result of the following:
A final dividend of $22.8 million for the 2015-16 financial
Higher water sales as consumption exceeded budget
year was paid during the year. The amount of the final dividend
by 7,434ML or 5.3%.
for the year ended 30 June 2017 will be determined after
consultation between the Board, the Water Minister and the
Water and sewer service charges revenue from higher than
Treasurer of Victoria.
budgeted customer growth and the identification of additional
customers liable for a service charge from the establishment
During 2016-17, total assets have increased by $191 million
of improved billing integrity processes.
as a result of the growth in infrastructure, property, plant
and equipment.
Higher trade waste volumes in food manufacturing and liquid
waste disposal site sectors.
Total liabilities increased by $123 million in 2016-17 largely
as a result of additional borrowings of $92 million, which were
Lower wholesale water fixed charges due to the decision
used to fund capital investments for our water and sewerage
to not charge costs associated with the desalination plant.
infrastructure. This growth in borrowings was significantly
Depreciation due to the impact of the 2015-16 year end
below the budgeted increase of $214 million.
fair value asset revaluation and lower capital expenditure
in 2016-17.
Lower than budgeted borrowings due to higher customer
receipts, lower operational and capital payments and the
effective management of the debt portfolio to take advantage
of market conditions to decrease finance costs in the short
and long term.
20
YARRA VALLEY WATER ANNUAL REPORT 2016-17