Interim Result for Six Months to September 2012

Friday, November 30, 2012

Powerco Chairman Rick Bettle today announced the Company had made a net profit after tax of $40.2 million in the six months to 30 September 2012.

Powerco this year changed its financial reporting period, moving from a year ending 30 June to the year ending 31 March. Therefore comparisons between the current six months’ performance and that of the previously reported six month period are skewed by the inclusion of a full winter compared to the previous interim result which only included half the winter period.

Mr Bettle stated that Powerco has delivered a good result with total revenue for the six months to September 2012 of $214.6 million compared to total revenue for the six months to 31 December 2011 of $196.1 million. The variance between the two periods is driven by both seasonality and an increase in pass through costs which include higher transmission charges from Transpower and higher local body rates.

Powerco’s earnings before interest, tax, depreciation, amortisation and financial derivatives (EBITDAF) for the six month period ended 30 September 2012 was $123.7 million. EBITDAF for the six months to 31 December 2011 was $110.0 million.

“Powerco has been very active in the regulatory area and continues to work constructively with the Commerce Commission to implement the new framework for regulated electricity and gas businesses. The aim of which is to ensure an adequate balance between the needs of consumers and the needs of infrastructure providers so that we can continue to provide reliable services as well as develop our networks which underpin future growth in New Zealand’s economy,” Mr Bettle said.

Following the close of the period, Powerco secured a long term debt facility from the United States Private Placement market of NZ$127 million which will be used to repay bonds (PWC050) maturing in March 2013. Mr Bettle said Powerco’s stable earnings history, credit strength and positive outlook were key attributes which underpinned the successful refinancing at very competitive rates.

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