SP AusNet says it has posted a 15–25% increase net profit after tax for HY2011, driven mainly by a favourable tax position.

The tax deductions were arrived at after completion of SP AusNet’s tax returns on 30 September 2010.

The favourable movement in income tax expense amounts to $28 million and includes:

SP Ausnet says the underlying business also continues to perform well, particularly in electricity distribution where revenues are well ahead of the previous corresponding period.

“While we are pleased with these positive financial effects, we appreciate that our securityholders are aware of events that presently cause uncertainty for our business, including the outcome of the electricity distribution price review (due October 31), ongoing tax audits and bushfire-related litigation. Our position on these has not changed since our previous advice,” says SP Ausnet.