NGC holdings posts nine month profit of $61.3m

Energy firm NGC Holdings today posted a net profit of $61.3 million for the nine months ended March.

The profit was 4.4 per cent higher than the $58.7 million reported in the previous same period.

Total operating revenue during the period was $350.4m, against $337.9m a year earlier.

NGC's operating surplus before unusual items and tax was $85.0m, from $91.5m in the previous nine months to March 31.

It said there would be no dividend beyond those already issued during the period, which totalled 12c a share.

Chairman Michael Stiassny described the result as a strong operational performance. He said NGC was on track to meet its full year earnings forecast of $81.5m.

Earnings before interest and tax (ebit) was up 10.3 per cent at $110.2m, despite higher operating costs, depreciation and amortisation.

Mr Stiassny said the ebit improvement was partially offset by a $12.4m rise in finance costs to $20.8m.

That reflected the "absence of debt for the first five months of the comparable previous nine-month period," he said in a statement to the sharemarket.

As previously reported, net earnings for the nine month stanza had benefited from the release of $8.3m after a reassessment of the group's deferred tax liabilities.

The firm's gas trading, gas liquids and gas transportation units had all made improved contributions at ebit level, Mr Stiassny said.

"The contribution from the Energy Metering business was static as increased revenues from an expanded asset base were offset by consequently higher operating costs and depreciation."

Meanwhile, NGC has started quarterly reporting, which was in line with majority shareholder Vector.

NGC shares were unchanged at $3.26 shortly after the market opened today. They have ranged between $2.42 and $3.38 in the past year.

- NZPA