Opportunity in crisis for UnitedNet

By PAULA OLIVER

UnitedNetworks yesterday unveiled a boosted half-year profit and pointed to the electricity shortage as a haven of opportunity for its gas business.

The country's largest electricity distributor reported a net profit of $53.6 million for the six months to June 30, an increase of 12 per cent on last year's $48 million.

Though silent on the progress of its telecommunications business, chief executive Dan Warnock said the company's result benefited from a pedantic attitude to cutting costs, and a contribution from its new gas business.

UnitedNetworks bought the gas pipelines of Orion last year for $550 million.

Mr Warnock said that natural gas provided a competitive alternative to electricity, and the company would be building its gas business.

"These are turbulent times in electricity, but they are also opportunistic times," Mr Warnock said.

UnitedNetworks now distributes gas to more than half of New Zealand's gas consumers, and electricity to 30 per cent of electricity users.

Revenue in the six-month period was up 8 per cent to $227 million, and earnings per share rose to 35 cents.

UnitedNetworks will pay a fully imputed interim dividend of 17 cents a share on September 7.

Mr Warnock said the company expected its final dividend to be at least 17 cents a share.