Powerco Ltd attributed a 4.5 percent fall in its interim earnings before interest, tax, depreciation and amortisation (ebitda) to the impact of the Commerce Commission's decision in January 2009 to reduce gas prices by about 11 percent.It also cited incre
Powerco Ltd attributed a 4.5 percent fall in its interim earnings before interest, tax, depreciation and amortisation (ebitda) to the impact of the Commerce Commission's decision in January 2009 to reduce gas prices by about 11 percent.
It also cited increased costs related to regulatory and corporate activities.
The ebitda of $113.7 million in the six months to December 31 compared to $118m last year.
The company made a profit after tax of $15.3m in the six month period compared to a loss of $31.476m in the same period last year.
Powerco manages gas and electricity networks in the central and lower North Island.
Chairman Rick Bettle said Powerco's regulatory outlook had improved in the latter part of 2009 with the Commerce Commission lifting its electricity revenue threshold.
"We see the Commerce Commission's lifting of the electricity revenue threshold as a sign that New Zealand's regulatory environment is maturing, reflecting the need for ongoing investment in our assets. "
The company noted that many businesses across New Zealand experienced substantial decreases in revenue during 2009 due to global economic conditions but Powerco increased revenue by 2 percent of $187.3m.
