Powerco earnings rise 8.9% in new balance date, boosts dividend
Powerco boostsnet profit 8.9% in the nine months to March in a year when it changed its balance date and paid out more to its shareholders.
BUSINESSDESK: Powerco boosted net profit 8.9% in the nine months to March in a year when the country's second-biggest local electricity network owner changed its balance date and paid out more to its shareholders.
Profit rose to $25.6 million in the nine months ended March 31, or 6.9 cents per share, from $23.5m in the same period a year earlier, the New Plymouth-based company said.
Revenue rose 4.9% to $281m, while earnings before interest, tax, depreciation, amortisation and fair value adjustments slipped $1m to $147.8m.
"The results reflect the company's resilience and stability," chairman Rick Bettle said.
"Our capital structure is stronger and we have invested for the future with a significant increase in investment in our distribution networks and by improving financial and operational systems."
Powerco has four bonds totalling $330m listed on the stock exchange's debt market and issued a $100m wholesale bond in December.
All four securities trade at a premium to their face value, and $130m of that debt matures in September this year.
The company paid $48.3m, or 13.1 cents per share, in the nine-month period, up from $25m, or 6.8 cents per share, in the 2011 financial year.
Powerco is 42% owned by Prime Infrastructure Networks, and is in discussions with co-owner QIC over its stake in the utility.
Prime Infrastructure, formerly Babcock & Brown, reported a net loss of $11m in the 2011 calendar year, and has $147.1m of listed New Zealand debt maturing in November this year.
Paul McBeth
Wed, 23 May 2012
Wed, 23 May 2012
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Powerco earnings rise 8.9% in new balance date, boosts dividend
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