Powerco's annual profit falls 20% as it pays more tax

Friday 29th May 2015

Powerco, the energy lines company, reported a 20 percent drop in annual profit as it paid more tax and didn't realise gains on financial instruments.

Profit slipped to $73.7 million in the year ended March 31, from $91.8 million a year earlier, New Zealand’s second largest electricity network owner said. Revenue rose 7.3 percent to $445.9 million. The company paid $20 million in tax, from a previous benefit of $3.6 million.

The 2015 financial year "was another year of reliable performance where Powerco continued to focus on engaging with its 430,000 consumers and ensuring its gas and electricity networks provide a reliable supply for the communities it serves,” Powerco chairman John Loughlin said.

Powerco has $100 million in bonds listed on NZX's debt market. One $50 million tranche, which matures on June 29 and carries a coupon of 6.53 percent, last traded at a yield of 4.35 percent. The second bond, which matures in September 2017 and carries a coupon of 6.74 percent, last traded at a yield of 4.4 percent.

BusinessDesk.co.nz

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