ENERGY FUTURE
in depreciation and amortisation in this half. Adjusted earnings before interest, tax, depreciation and amortisation (Adjusted EBITDA) were down to $250.0 million from $257.0 million in the prior period. Regulated Business earnings were down $3.0 million largely due to an increase in maintenance expenditure. Gas Trading earnings were down $5.3 million, because of a $5.3 million insurance settlement one-off in the prior year, with underlying earnings flat. While earnings in the Technology segment grew $4.2 million and Regulated Networks and Gas Trading, growth was lower than expected for the reasons set out earlier, and also due to changes to the way we account for internal communications services. Capital expenditure (capex) increased 5.7% to $182.7 million from $172.9 million in the prior period. This was driven by Auckland growth and by higher network replacement capital expenditure, helped to offset the earnings decline in
which was partly offset by lower metering capital expenditure in line with the slow-down in New Zealand meter deployment rates. Creating long-lasting, sustainable value In a world being rapidly disrupted, we must maintain our focus on creating lasting and sustainable value for our customers, for shareholders and for New Zealand. According to the International Renewable Energy Agency (IRENA), by 2020, all the renewable power generation technologies that are now in commercial use will fall within the fossil fuel-fired cost range, with most at the lower end or even undercutting the cost of fossil fuels. Over the next decade, as the cost of solar and wind energy generation and battery storage inevitably falls and becomes competitive with traditional generation, we expect energy to be increasingly
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