Aurora Energy has recorded its strongest financial year yet.
The power company today said its underlying profit for the 2012-13 financial year was $76.5 million - more than $20.1 million more than the previous financial year.
It attributed the result to significant cost reductions across the business.
More than $30 million in savings came from a reduction in functional and finance costs.
Chairman Geoff Willis said the company's board would be recommending a dividend of $25 million be paid to the state government later this year, on the back of a $16 million payment last year.
The company's return to the government has increased 36 per cent to $37.9 million in the past financial year.