Commercial evaluation of KiwiRail, Solid Energy and total SOE portfolio in New Zealand since 2007

Two dogs of an investment propped up a $20 billion portfolio that a few years later was worth less than 1/5 of that. Both of these stalwarts are now worth not even one dollar.

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Source:New Zealand Treasury – information released under the Official Information Act, January 2016.

NZ state-owned enterprise dividends & cash injections since 2007 – updated

With a straight face, the Labour Party and the Greens claim that state-owned enterprises should not be sold because taxpayers give up the future dividend stream.

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Source: New Zealand Treasury – data released under the Official Information Act.

Leaving to one side what the sale price is the net present value of, for as far back as I could obtain data from the Treasury, it is a rare year in which the taxpayers does not pour more money into state-owned enterprises than they get back in dividends.

Transpower is carrying the entire state-owned enterprise portfolio. Earlier on, Solid Energy – a now bankrupt coal mining company– was carrying the portfolio in terms of cash flow to the taxpayer.

KiwiRail commercial valuation since 2007 @JordNZ @dpfdpf

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Source: New Zealand Treasury – data released under the Official Information Act.

Alfred Marshall on @johnmcdonnellMP socialism with an iPad

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The commercial valuation of the New Zealand state-owned enterprises portfolio since 2007 with and without Solid Energy and KiwiRail

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Source: The New Zealand Treasury – data released under the Official Information Act.

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Source: The New Zealand Treasury – data released under the Official Information Act.

The financial performance of Landcorp since 2007

Landcorp is a state-owned enterprise of the New Zealand government. Its core business is pastoral farming including dairy, sheep, beef and deer. In January 2012, Landcorp managed 137 properties carrying 1.5 million stock units on 376,156 hectares of land. Its total return to shareholders, the taxpayers, has been quite up-and-down in recent years.

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Source: The New Zealand Treasury – data released under the Official Information Act.

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Source: The New Zealand Treasury – data released under the Official Information Act.

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Source: The New Zealand Treasury – data released under the Official Information Act.

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The financial performance of Solid Energy (NZ state-owned enterprise) since 2007

Leaving aside the fortunes and vicissitudes of the mining industry, Solid Energy’s numbers have been up and down by so much that if this was in a private company, you would start to wonder.

Source: The New Zealand Treasury – data released under the Official Information Act.

Taxpayers barely saw a cent of those multibillion-dollar valuations of just a few years ago for a company now under receivership. I doubt the ride was worth the price of passage for the taxpayer.

Source: The New Zealand Treasury – data released under the Official Information Act.

Source: The New Zealand Treasury – data released under the Official Information Act.

The financial performance of TVNZ since 2007

The volatile returns to taxpayers from Television New Zealand shows that continuing to own a state-owned enterprise operating a legacy media adds considerable risk to the taxpayers’ portfolio.

Source: The New Zealand Treasury – data released under the Official Information Act.

Source: The New Zealand Treasury – data released under the Official Information Act.

Source: The New Zealand Treasury – data released under the Official Information Act.

The financial performance of New Zealand Post since 2007

New Zealand Post is slowly going out the door with declining dividends to taxpayers, a sustained decline in its commercial valuation and a negative or poor Total Shareholder Return. Letter volumes declined by a one-half in 10 years but the parcels business is growing because of the rise of e-commerce and Internet shopping.

Source: The New Zealand Treasury – data released under the Official Information Act.

Source: The New Zealand Treasury – data released under the Official Information Act.

Source: The New Zealand Treasury – data released under the Official Information Act.

@nzlabour @NZGreens New Zealand state-owned enterprises dividends paid and capital injections since 2007

The New Zealand Labour Party and New Zealand Greens both make much of the fact that when you privatise a state-owned enterprise the taxpayer is no longer entitled to dividends from the privatised business. The fact that the sale price is the net present value of those future dividends is a rating fallacy that is not the subject of this post.

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Source: New Zealand Treasury –  data released under the Official Information Act.

What is the subject of this post is whether there are indeed any dividends paid to taxpayers after capital injections. 2007 was the last year in which dividends to the taxpayer exceeded capital injections. The reason was that dog called KiwiRail.

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