26 Feb 2010

Powerco turns around previous loss

6:07 am on 26 February 2010

Powerco has made a profit of $15.3 million in the six months to December, a turnaround from a loss of $31.5 million in the same period a year ago.

Revenue rose 2% to $187 million, though gross earnings fell - Powerco is blaming that on theCommerce Commission, which reduced gas prices by 11%, and also on extra costs.

But the energy network company has congratulated the commission for allowing it to lift the electricity revenue threshold from the beginning of April, saying it recognises the need for ongoing investment in energy networks.

Powerco refinanced $420 million of debt at the end of last year and its shareholders, who include 58% Australian owner QIC, will inject $100 million into the business in April.