Powerco profits escape damage

By CHRIS DANIELS energy writer

Powerco, the electricity lines company for most of the central North Island, says profits won't be harmed by the storms and floods that have battered the region.

Chief executive Steven Boulton said most of the work on restoring the network had been done by Powerco staff.

"We changed the type of work they were doing," he said.

The Powerco crews were switched from doing planned work, which had now been pushed into the next financial year.

Some poles and wires had been swept away by the floods and slips, but not a lot of equipment had to be replaced.

Hiring helicopters and outside contractors had added to costs, but the extra expense had not been high. Powerco's crews also worked extra overtime.

"There will be no material impact on Powerco's forecast profit for the year," Boulton said.

Powerco had partial insurance, but high costs meant it was not usual for lines companies to insure against storm damage.

Powerco has about 400,000 electricity and gas consumer connections in the North Island.

This week it announced a bond issue, which it is hoping will raise at least $200 million.

Money raised will be used to used to refinance bank debt, taken on to pay for Powerco's purchase of gas and electricity assets from UnitedNetworks in November 2002.