Power and strike on the agenda

By ELLEN READ

The power crisis and industrial action at Kinleith pulp and paper mill will be topics for discussion among equity investors this week.

Carter Holt Harvey shareholders meet on Wednesday, and, as well as being asked to approve a new constitution - necessary because the company now has a dual listing on the Australian Stock Exchange - the subject of the long strike at Kinleith will be prominent.

On April 16, Carter Holt reported a tripling in first-quarter net profit to $51 million and pledged to do whatever it took to win the-then five-week-old industrial dispute at Kinleith.

It said the solid financial start to the year was achieved across all of the businesses and with the help of currency hedges that reduced the impact of the high New Zealand dollar.

The industrial action - about rights to promotion, pay and firefighting services - is estimated to be costing the company around $150,000 a day.

Contact Energy unveils its six-month result on Thursday. The power crisis and its effect on the company will be a hot topic because the result covers the period to the end of last month.

Shrinking hydro lake levels are underpinning high wholesale prices and providing a boost to Contact - and its share price - as a net generator of power. Another influence on the share price is the threat of Government regulation.