Powerco Continues to Deliver Solid Results
Wednesday, 31 March 2010
Powerco has reported a net profit of $15.3 million for the period on revenues, including other income, of $187.3 million, up two per cent on the $183.8 million earned in the six months to 31 December 2008.
“The result continues our history of consistent financial performance and demonstrates the company’s underlying strength and stability,” Chairman Rick Bettle said at the publication of the company’s report for the six months to 31 December 2009.
“It’s important to note that Powerco has produced this solid performance when many sectors of the economy have experienced difficulties due to fluctuating global economic conditions.”
“We’re confident we can continue to perform well and grow as the economy recovers and the regulatory environment for infrastructure improves.”
Commerce Commission changes which increased Powerco’s electricity revenue threshold will start to flow through to the business in the second half of this financial year. This increase will assist in funding further capital expenditure on the network. We see that the regulatory environment is maturing, however, we continue to actively contribute to the development of the new regulatory regime for electricity distributors.
The company will repay $100 million of subordinated bonds (NZX: PWC070) which mature next month, with proceeds from an equity injection from Powerco’s holding company and contributions from Powerco’s ultimate shareholders (being funds managed by QIC Limited, and Prime Infrastructure Holdings Limited).
“Powerco’s assets provide an essential service to more than 415,000 New Zealand homes and businesses, who rely on us to make sound long-term decisions with their interests in mind. It is pleasing to note that almost all consumers Powerco has met with in the past year have been satisfied with the quality of infrastructure we provide,” he said.
Powerco is New Zealand’s second largest electricity and gas distribution utility with around 400,000 consumers connected to its networks. Powerco’s electricity networks are in Tauranga, Thames, Coromandel, Eastern and Southern Waikato, Taranaki, Wanganui, Rangitikei, Manawatu and the Wairarapa. Its gas pipeline networks are in Taranaki, Hutt Valley, Porirua, Wellington, Horowhenua, Manawatu and Hawke’s Bay.
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