Powerco profit surges 64pc as UnitedNetworks buy kicks in

By CHRIS DANIELS energy writer

Powerco, the listed gas and power lines company, has announced a half-year profit of $30.7 million, up from $18.7 million for the same period last year.

The unaudited first half results show up the impact of the company buying the central and lower North Island assets of UnitedNetworks.

This purchase grew Powerco's asset base from $867 million to $1.7 billion. Combined gas and electricity consumer connections rose from 207,000 to 390,000.

The company yesterday reaffirmed a full-year profit forecast of $53.6 million for the 2004 year, with a total forecast dividend of 16c a share. Its profit for the past year was $38 million and it paid out a dividend of 14c a share.

There was a "slight decline" in electricity revenue during the past half year, said chairman Barry Upson.

This was due to the low lake level crisis this year, when consumers were asked to make electricity savings of 10 per cent.

In announcing the results, Upson railed against the current regulatory environment.

He said the company was in the "unenviable position of having to involve itself in expensive and seemingly endless submission process with no less than five regulatory organisations looking to impose an ever-increasing raft of regulations on our electricity lines and gas pipes operations".

Powerco is 38.16 per cent owned by the New Plymouth District Council, with a further 11.79 per cent owned by the Taranaki Energy Trust.