Powerco adds finance whiz to board

By Felicity Anderson, Nzoom.com Business News Editor

Thursday 18th October 2001

New Zealand's third largest electricity and gas utility, Powerco, has established a finance committee to review and develop the energy company's capital framework for future growth.

Macquarie New Zealand and NZ Post director James Ogden has been added to Powerco's board to chair the committee.

Powerco Chairman Barry Upson says Ogden's expertise will provide additional capability in the areas of capital funding, business valuations and mergers and acquisitions.

Powerco reports a net profit of $17.6 million for the six months to the end of September, on the back of revenue of $77.8 million.

Shareholders will receive a fully imputed interim dividend of 5.9 cents a share. But Powerco is warning when it pays what it anticipates a further 7.2cps in June, it will have exhausted its imputation credit account.

Upson says the full year forecast has been revised upwards to $33.4 million from the original $31.6 million.

Upson says the company's positive results for the half year come from the benefits of its mergers, the recent acquisition of Hutt Valley and Porirua gas networks from Australian Gas Light and cost containment.

Chief Executive Steve Boulton says Powerco has around 10% New Zealand's electricity connections and around 25% of its gas connections. It covers Taranaki, Wanganui, Manawatu, Wairarapa and Wellington.

Recently Power announced it is in discussions with Eastern Bay Energy Trust over ownership options of Horison Energy Distribution and expects to make an announcement on its progress by the end of this month.

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