Alpine Energy posts $12.1m loss in ‘reset year’, boosts CEO pay

Friday, 5 September 2025

Alpine Energy’s latest annual report says 2025 was a “reset year” for the company.

South Canterbury lines company Alpine Energy has recorded a $12.1 million loss for the 2025 financial year ended on March 31.

Although it was unable to pay shareholder dividends and forced to defer some projects and cut community funding, the company was able to carry out one of its largest network delivery programmes and pay its chief executive about $200,000 more than last year.

In the latest annual report, chief executive Caroline Ovenstone and former board chairperson Melissa Clark-Reynolds, who departed at the end of August, said in a joint message that 2025 had been a “reset year” for the company.

That reset followed the revelation of a historical error that had caused the company to overcharge customers over a nine-year period, leading to a Commerce Commission investigation.

Melissa Clark-Reynolds stepped down from the Alpine Energy board at the end of August. (File photo)

“We have addressed some hard issues, stabilised the business, and focused on delivering safe and reliable services while setting up for the work ahead,” the pair said.

Overall operating results reflected the scale of fixing the historical error, paired with a “constrained fiscal environment”, they said.

“Growth in the network has been slower than we anticipated, with a number of projects delayed.

“Even so, we delivered for our customers, and FY25 saw one of the largest network delivery programmes in our history.

The lines company invested $30.1m in network projects in the 2025 financial year, below its budgeted target of $36.3m.

“This was required as many of our assets are ageing. Network investment was crucial, although we deferred some work to manage the financial impacts of the correction.”

The underlying business remained solid, supported by “our people who have stayed focused on getting the work done safely and well”, they said.

Operating revenue was listed at $63.869m, after a $16.902m adjustment to repay the historical error ($80.771m prior to the adjustment).

That was down 26% on the previous year’s $86.108m.

The loss from operations, after tax, amounted to $12.055m, well back on profits of $5.254m in 2024 and $14.703m in 2023.

The company invested $30.1m in network projects. This was below its budgeted target of $36.3m, largely because of a downturn in customer-initiated work.

An Alpine Energy-branded vehicle parked in Stafford St, Timaru. Vehicle replacements were deferred in the financial year.

“We continued to invest across the network, completing significant projects in Washdyke, Coopers Creek, Timaru township and [Aoraki] Mt Cook, among others,” the report said.

“These upgrades significantly enhance the network’s resilience and capacity, ensuring long-term performance and reliability.

“Connection activity slowed during the year, reflecting the softer economic conditions, but industrial development has started to lift again.”

Non-network expenditure was $2.4m, with several projects deferred, including yard development, vehicle replacements and digital platform investments.

Work on power lines between Temuka and Geraldine.

The deferred projects were expected to proceed over the next two years.

The report said the group’s financial structure remained sound, with net external debt finishing below budget at $116.4m.

The 2025 financial year was the company’s first full year of operation as a single company following the amalgamation with Netcon in 2023.

“The business is now structurally simpler, though there is still work to be done here – we have a comprehensive plan to move to fully integrated operations and systems,” it said.

Alpine Energy chief executive Caroline Ovenstone.

The amalgamation had seen the executive leadership team restructured, new roles created and a larger combined organisation.

The number of executive roles was reduced from 12 to seven, including the removal of one chief executive.

In 2024, employees paid more than $100,000 numbered 111 and in 2025 that increased to 142.

At the top end of remuneration was the chief executive role, which increased from a range between $410,000 and $419,000 in 2024 to between $610,000 and $619,000 in 2025.

“The chief executive officer role of the new combined organisation was resized in early FY25, and associated backpay was processed,” the report said.

In April, the Commerce Commission confirmed the lines company would not be charged over the accounting error, which saw customers pay more for their lines component of power bills.

However, it was issued a warning and told to refund customers $16.9m.

The company was also ordered to spend at least $1.5m to support access to electricity in the South Canterbury community within two years.

Although the error was discovered and reported in August 2023, the company did not inform its customers until more than eight months later, in April 2024.

Alpine Energy is jointly owned by Timaru District Holdings Ltd (47.5%), the Waimate District Council (7.54%), the Mackenzie District Council (4.96%) and LineTrust South Canterbury (40%).