Powerco's profit jumps 15 per cent

10.30am

Electricity lines company and gas network operator Powerco today posted a $38.05 million profit for the full year to March 31, up 15 per cent on the previous year.

Today's result was based on total operating revenue of $229m, compared with $163m a year earlier.

The company will pay a dividend of 8 cents per share on June 20.

The total dividend for the year was 14cps. Earnings per share fell to 14.6 cents from 14.8 cents a year ago.

The profit, up 4.9 per cent on the October forecast, was on increased revenue of $229.3m, up from $163.1m.

Powerco chairman Barry Upson said Powerco's "solid performance" was largely attributable to the successful acquisition and integration of the former UnitedNetworks assets late last year.

That acquisition boosted the company's asset base from $800 million to $1.7 billion. It expanded its power lines network reach to Tauranga, eastern and southern Waikato, Thames and Coromandel. It acquired gas assets in Wellington, Horowhenua, Manawatu and Hawke's Bay.

Mr Upson said the integration of the network assets within a short period of three months.

He said the company was confident that the 2004 forecast after tax earnings of $53.6m should be achieved together with the forecast unimputed dividend payment of 16 cents per share.

Powerco has approximately 290,000 electricity consumer connections and 108,000 gas consumer connections in the North Island.

Its shares were up one cent at $1.52 after trading between $1.23 and $2.05 in the past 12 months.

- NZPA