NGC faces questions on chances of Powerco talks

By ELLEN READ

Market heavyweight NGC Holdings will tomorrow face a barrage of questions over its plans for mergers with rivals as it reveals its full-year earnings.

With the energy sector in a state of flux over ownership, investors want news on the chances of revived talks with fellow listed energy firm Powerco (which now has a new Australian controlling shareholder in Prime Infrastructure).

As for the profit - in February, NGC recorded net earnings of $50.7 million for the six months ended December 31, 2003.

Company chairman Phil James said then that revenues, margins and net earnings would be lower in the second half due to a different capital and debt profile following last year's $527.4 million capital return to shareholders.

"As such, net earnings for the first half are likely to represent around 70 per cent of the full-year result," he said. NGC has not released any changes to this forecast since then. If the figures were materially different it would have given an update to the stock exchange. Information overload is a distinct possibility this week as joining NGC in reporting are Ports of Auckland, Tenon and a host of others.

"I'm not expecting any particularly bad results to come out. In actual fact they seem to be coming through at what we're expecting and above. And we were expecting good. It's been a very good reporting season," ABN Amro head of research James Miller said.

Analysts are divided on the importance of Thursday's Wrightson result.

Some watch the rural services company as a sign of rural economic health - others say that is drawing too long a bow.

Many are looking for an update on what changes its new cornerstone shareholder, Craig Norgate's RPI, is making.