Powerco reports profit rise after network purchases

New Plymouth-based Powerco has posted a 6.5 per cent rise in half-year profit, after tax, to $18.75 million.

Revenue rose from $77.8 million to $93.98 million.

Powerco chief executive Steven Boulton said the "solid performance" came after the acquisition of the Hutt Valley and Porirua gas distribution networks in 2001-2002, and the amalgamation between CentralPower and Powerco in 2000.

Powerco recently announced that it and Hawkes Bay Networks would buy UnitedNetworks' Eastern Region electricity network for $785 million.

Powerco will also buy UnitedNetworks' gas networks in Hawkes Bay, Manawatu and Wellington for $220 million.

The company will soon announce details of a $150 million equity-raising programme, which will be used to help pay for its purchase of the UnitedNetworks assets.

As a result, Powerco's asset base is expected to increase to $1.7 billion by next month, making it the second largest energy distribution company in terms of total consumer connections.

The electricity and gas distributor will seek shareholder approval for the transaction at a meeting on October 29 in New Plymouth.

The three largest shareholders, who hold about 68 per cent, have indicated their support.

The company will pay an interim dividend of 6c a share, subject to withholding tax, on November 25.

The interim dividend for the same period last year was 5.9cps.

Powerco shares closed up 2c at $1.80, compared with a year high of $2.10 and a low of $1.73.

- NZPA