Sustainability Report 2006/07Sound financial performance
This year, we made payments to the Victorian Government of $117.4 million, comprising a dividend of $86.6 million, income tax equivalent payments of $23.8 million, a fnancial accommodation levy of $4.8 million and local government rates equivalent of $2.2 million.
We invested $226.7 million in capital works. Operating revenue was $588.3 million, which was $4.7 million below plan.
Operating expenditure was $324.2 million, which was $27 million below plan. Net profit after tax was $133.5 million compared with $168.7 million the previous year.
Total assets increased by $210.2 million from $3,768.7 million in 2005/06 to $3,978.9 million in 2006/07. Our borrowings increased by $70.7 million during the year.
This result equates to return on equity of 7.1% compared with our plan of 6%.
At 30 June 2007, the total book value of our interest-bearing liabilities was $1.33 billion. Our gearing ratio was 41.3% compared with 40.7% for the previous year, which is within our target range.
Melbourne Water’s agricultural operation at the Western Treatment Plant used 26,242 million litres of recycled water for environmental management and irrigation purposes during the year. Unfortunately, a blue-green algal bloom in the 25 West lagoon prevented a more significant amount being used, as it was not possible to use supply from this lagoon until the algal bloom dissipated.
