$205 million due oct 30, page-6

Powerco has just managed to refinance 420 mil of debt

Electricity and gas distribution company Powerco has reported a full year net profit of $8.1 million, significantly affected by two non-cash adjustments.

The result compared with a net operating loss of $6.5m the previous year.

Excluding non-cash adjustments, operating profit after tax for the 12 months to the end of June was $44.8m, compared to profit of $16.2m the previous year, Powerco said today.

The $28.6m rise in after-tax operating profit, excluding the non-cash adjustments, was mostly due to a cut in depreciation and amortisations of $11.9m, a cut in total interest cost of $5.5m, and a cut in taxation expense of $ 11.5m.

Revenues for the latest year were $371m, from $366.9m a year earlier.

Earnings before interest, tax, depreciation amortisations (ebitda) were $221.1m, from $221.3m the previous year.

A non-cash gain of $20m was made on the sale of an investment in Powerco Australian operations in February, while a mark to market non-cash loss of $56.7m was recorded on financial derivatives.

In February 2009, BBI Networks (NZ), the previous 100 percent owner of Powerco, sold 58 percent of its interest in the Powerco Group to QIC.

That was done through the establishment of a new parent company Powerco NZ Holdings, which now holds 100 percent of the shares of Powerco.

Powerco said $420m of debt was due to expire on November 4. It was in the process of refinancing those facilities and had received a commitment from lenders for the full amount.