Powerco boosts profit

By NZPA

Tuesday 27th April 2004

Electricity and gas distributor Powerco has boosted its net profit for the year ended March.

The company reported a net profit of $55.1 million, up from $38.1 million the previous year. Powerco's total revenue for the March year was $325 million, up from $229 million.

Earnings per share were 17.4 cents up from 14.6 cents the previous year.

An unimputed final dividend of 8.8 cents per share will be paid on June 18, bringing the total dividend for the year to 16 cps.

The results included a full 12 months of revenue from the acquisition of the UnitedNetworks assets, compared to the previous year's results which included only five months of acquisition related revenue.

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," he said.

Boulton said the main focus for the year ahead would be on consolidation as well as improving systems, productivity, and cost containment.

Powerco has around 295,000 electricity consumer connections and 106,000 gas consumer connections in the North Island and a growing investment presence in Australia. The company rolled out a gas distribution network in Tasmania this year.

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