Cashed-up Orion looks further afield

By Chris Hutching

Friday 12th July 2002

Canterbury lines company Orion, with assets of $510 million and a gearing ratio of just 4%, is on the lookout for new investments in partnership with Infratil and the government's Venture Investment Fund.

The Orion and Infratil venture was one of the five successful investment managers chosen to participate in the VIF scheme.

Orion posted a $31.5 million after-tax profit in its latest year to March on turnover of $190 million, 12% ahead of budget. Chairwoman Linda Constable said some of this year's income came from cabling work carried out for TelstraClear's network in Christchurch.

Orion's profit is much less than last year's, which included $215 million from the sale former subsidiary Enerco. Most of that went as a dividend to 87% shareholder Christchurch City Council, which used it to reduce debt and set up a $75 million economic development fund. Minority shareholders Selwyn District Council and Banks Peninsula District Council also received their share.

This year Orion will pay $24 million in dividends. Over the past eight years it has paid out $650 million.

Orion maintains some royalty rights in oil and gas exploration licences off the west coast of the North Island. Ms Constable said they dated back to the period of Enerco ownership and had effectively been a lever to bring Enerco's buyer NGC to the party.

Equity investments were firms Pulse Data, 4RF and Whisper Tech. Orion has supported Whisper Tech's multi-fuel home-generation technology for 10 years.

Comments from our readers

No comments yet