2010 Valuation Reports
Page updated 24 May 2011
The Crown Ownership Monitoring Unit (COMU) has released Valuation Reports on New Zealand Post, Solid Energy, Transpower, Mighty River Power, Genesis Energy and Meridian Energy.
Under the State-Owned Enterprises Act 1986 (Legislation website), one of the principal objectives of a state-owned enterprise (SOE) is to operate as a successful business. As part of the reporting of that success, the boards of SOEs are required to assess their estimate of the commercial value of the Crown’s investment and disclose their estimates annually in their Statements of Corporate Intent (SCIs).
To increase transparency of the value of the Crown’s investment, Crown Ownership Monitoring Unit (COMU) has commissioned commercial valuation reports. Engaging equity analysts to conduct valuations, based on public information, and publishing those valuations is also intended to provide boards with greater incentive to conduct more robust commercial valuations themselves.
The reports follow a similar format to those produced by investment banks on the New Zealand Stock Exchange listed companies. These research reports are designed to identify and examine the main drivers of company performance and, ultimately, value.
Since 2007 Macquarie Research has prepared valuation reports for Meridian Energy, Mighty River Power and Genesis Energy. This year the process has been expanded to cover a greater proportion of the SOE portfolio and includes reports from First NZ Capital and Forsyth Barr for Solid Energy New Zealand Ltd, Transpower New Zealand Ltd and New Zealand Post Ltd.
This year, to encourage further discussion on this important performance measure and to allow for alternative views to be taken on key assumptions two independent valuation reports have been prepared for each SOE. Preparing two reports is likely to lead to more robust valuations.
The following table provides the comparison of the two valuation reports and the SOE’s SCI commercial valuation.
SOE |
Release Date |
2010 Value ($bn) |
Link |
|---|---|---|---|
NZ Post |
7 December 2010 |
||
| Macquarie | 1.4 | nzp-vr-m-10.pdf (389 KB) | |
| First NZ | 1.1 | nzp-vr-f-10.pdf (374 KB) | |
| 2010 SCI | 1.2 | nzp-sci-10.pdf (510 KB) | |
Solid Energy |
14 December 2010 |
||
| Macquarie | 1.7 | senz-vr-m-10.pdf (339 KB) | |
| Forsyth Barr | 1.7 | senz-vr-fb-10.pdf (247 KB) | |
| 2010 SCI | 3.3 [1] | senz-sci-10.pdf (1205 KB) | |
Transpower |
14 December 2010 |
||
| First NZ | 1.1 | tnz-vr-f-10.pdf (295 KB) | |
| Forsyth Barr | 1.9 | tnz-vr-fb-10.pdf (159 KB) | |
| 2010 SCI | 1.6 | tnz-sci-10.pdf (93 KB) | |
Mighty River Power |
18 January 2011 |
||
| Macquarie | 3.7 | mrp-vr-m-10.pdf (376 KB) | |
| First NZ | 3.8 | mrp-vr-f-10.pdf (358 KB) | |
| 2010 SCI | 3.4 | mrp-sci-10.pdf (922 KB) | |
Genesis Energy |
18 January 2011 |
||
| Macquarie [2] | 1.6 | gp-vr-m-10.pdf (342 KB) | |
| First NZ | 1.7 | gp-vr-f-10.pdf (338 KB) | |
| 2010 SCI | 1.6 | gp-sci-10.pdf (190 KB) | |
Meridian Energy |
18 January 2011 |
||
| Macquarie [2] | 6.5 | me-vr-m-10.pdf (306 KB) | |
| First NZ | 6.3 | me-vr-f-10.pdf (368 KB) | |
| 2010 SCI | 6.7 | me-sci-10.pdf (761 KB) | |
Notes
Note that there will always be variation between individual assessments of the Crown’s interest as each valuation is independent of the other and utilises different information about the operations, investments and financing of each SOE. The valuations have been undertaken for the purposes of performance measurement and transparency, and they should not be used for any other purpose.
