Powerco Chairman, Barry Upson, today announced an unimputed final dividend of 8.8 cents per share, which will be paid on 18 June 2004 to all shareholders on the Company’s register at 5.00 pm on 4 June 2004.

This dividend brings the total dividend for the year ended 31 March 2004 to 16 cents per share, as per the forecast issued to the market in April last year.

The surplus result in the 2003/4 period is an improvement on the previous year reflecting a full 12 months of revenue from the acquisition of the UnitedNetworks assets compared to the result in 2002/3 which included only 5 months of acquisition related revenue said Mr Upson.

It is pleasing that for the third year running our management team have been able to deliver an audited result within four weeks of balance date said Mr Upson.

The Company’s total revenue now includes a more balanced income stream from owning both urban and rural electricity and gas network assets, and the operation of a number of other businesses including the management of network assets and provision of energy services in both New Zealand and Australia. Powerco has also expanded its gas asset ownership and operation with ongoing investment in rolling out a gas network in Tasmania.

Powerco Chief Executive Steven Boulton said the 2003/4 year had been a particularly challenging period for the company and staff.

"Powerco had to contend with a number of business difficulties including the 2003 winter energy crisis, the rare and extreme storms that hit the North Island in February 2004 and the ongoing cost and resource drain associated with the Government’s continued focus on regulation.

"These difficulties were balanced by good results from Powerco’s strategic growth, with improved financial performance from the integration of assets from UnitedNetworks acquired in November 2002 and the rollout of the distribution network in Tasmania."

Mr Boulton said that in the year ahead, Powerco would continue its focus on balanced stakeholder perspectives, sustainable investment issues and delivering a fair financial outcome to all stakeholders.

"The main operational focus for the coming year will be on further consolidation, improving systems, productivity, and cost containment and continuing to contribute constructively on industry issues, particularly in the area of regulation," Mr Boulton said.

Powerco has approximately 295,000 electricity consumer connections and 106,000 gas consumer connections in the North Island and a growing investment presence in Australia. Powerco is a publicly listed company, having listed on the NZX in December 2000 and is included in the NZSX50 index.