Lines company Orion triples forecast profit

Christchurch electricity network company Orion said today it had tripled its forecast profit largely thanks to recouping writedowns on listed Australian company Energy Developments Ltd.

Orion posted a net surplus of $52.3 million, including a $29m gain on the value of EDL. Last year, Orion wrote its EDL investment down by $13m.

Orion said since purchasing EDL, it had made a net $17m gain after taking into account holding costs and tax.

Orion's core lines network made a $33.5m surplus, $600,000 ahead of forecast.

Orion said that over the last five years it had cut prices by over 15 per cent in real (inflation-adjusted) terms.

It said reliability had been 99.989 per cent on average.

Orion paid $27m in dividends during the year to its shareholders -- Christchurch City Holdings (87.6 per cent), Selwyn Council Trading Enterprises (10.7 per cent) and Banks Peninsula District Council (1.65 per cent).

Since corporatisation in 1993, Orion said it had distributed over three quarters of a billion dollars in tax-paid dividends.

Orion's assets were valued at $768m.

- NZPA