Utility enjoys $64.24m gain

UnitedNetworks posted a 20 per cent increase in half-year net profit to $64.24 million.

The listed utility company, which is seeking a buyer for its shares or assets, will pay a fully imputed dividend of 19c per share on September 6, compared with 17cps last year.

The company's operating surplus for the six months ended June was $73.64 million, up on $56.14 million for the same period last year.

Total revenue was down by 2 per cent on last year, after Siemens Energy Services bought the field services business in July last year.

UnitedNetworks' share price has soared since the majority shareholder, American energy company Aquila, said it was selling its New Zealand investment to reduce debt.

UnitedNetworks will make a decision on the successful bidder by the end of this month.

UnitedNetworks chief executive Dan Warnock said a rise in revenue, a $7 million reduction in financing costs, and lower costs for its electricity, gas and communications businesses boosted the company's profit.

Warnock said both the gas and communications businesses were exceeding targets.

Start-up data communications business UnitedNetworks Communications attracted increased connections to the broadband network, resulting in a significant increase in use.

- NZPA