Powerco 9-month earnings rise 8.9% at new balance date

Wednesday 23rd May 2012

Powerco boosted net profit 8.9 percent in the nine months through March in a year when the country's second-biggest local electricity network owner changed its balance date and paid out more to its shareholders.

Profit rose to $25.6 million in the nine months ended March 31, or 6.9 cents per share, from $23.5 million in the same period a year earlier, the New Plymouth-based company said in a statement. Revenue rose 4.9 percent to $281 million, while earnings before interest, tax, depreciation, amortisation and fair value adjustments slipped $1 million to $147.8 million.

"The results reflect the company's resilience and stability," chairman Rick Bettle said. "Our capital structure is stronger and we have invested for the future with a significant increase in investment in our distribution networks and by improving financial and operational systems."

Powerco has four bonds totalling $330 million listed on the stock exchange's debt market and issued a $100 million wholesale bond in December. All four securities trade at a premium to their face value, and $130 million of that debt matures in September this year.

The company paid $48.3 million, or 13.1 cents per share, in the nine-month period, up from $25 million, or 6.8 cents per share, in the 2011 financial year. Powerco is 42 percent owned by Prime Infrastructure Networks, and in discussions with co-owner QIC over its stake in the utility.

Prime Infrastructure, formerly Babcock & Brown, reported a net loss of $11 million in the 2011 calendar year, and has $147.1 million of listed New Zealand debt maturing in November this year.

BusinessDesk.co.nz

Comments from our readers

No comments yet