Orion announces $31.5m net surplus for 2002

9 July 2002

Christchurch based network company Orion New Zealand has announced a $31.5m net surplus for the financial year to 31 March 2002. 

The net surplus was $3.4m or 12% ahead of the statement of corporate intent forecast. 

The result is not directly comparable with the previous year's due to the recognition of the more than $200m surplus on the sale of the North Island gas assets in that year. 

Announcing the result, Chairman Linda Constable said it had been another successful year for the company. 

"It has been another excellent year for shareholders with dividends totalling $24.2m. We also completed the planned $200m capital repatriation in March 2002. This brings the cash returns to shareholders over the last eight years to over $650 million." Ms Constable said. 

At balance date Orion had a low level of debt with a gearing ratio of approximately 4%. 

The Orion electricity network has also performed well. The continuing programme of investing in network upgrades to improve reliability and security shows through in Orion's reliability data. The average time customers were without power was 40% better than target and the number of interruptions was over 24% ahead of target. 

Orion still has one of the most reliable networks in New Zealand. 

"We have extended the 3 year delivery price freeze for residential and business consumers and in April 2001 became the first electricity network company in New Zealand to remove fixed charges for residential and small to medium sized business consumers. As a result, consumers using smaller quantities of electricity now have lower line prices." 

At the end of the financial year the long-standing rural irrigation price discounts were substantially reduced. The removal of this cross-subsidy was necessary due to the large rural investment Orion has had to make to keep up with recent dairy conversions and irrigation led demand. 

Ms Constable said that while the company's core business remains the efficient and reliable operation of the electricity network, the significant skills Orion has in managing investments in infrastructure, energy and technology were also being employed to grow the shareholders' investment. 

"During the year equity investments were made in technology based companies Pulse Data International, 4RF and Whisper Tech. Negotiations are continuing with the Government's advisers over possible VIF Fund involvement and a structured search process is underway to identify new infrastructure investments." 

"Orion has adopted sustainability reporting this year. This reports the company's progress in terms of its finances, community and environment - its 'triple bottom line'. We have reported key results and also set targets for next year. Stakeholder consultation is also an integral part of triple bottom line reporting." Ms Constable said. 

Financial result - pdf
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For more information:

Linda Constable
Chairman
Orion NZ Limited
Phone: 025 228 5456

or

Chris Laurie
Managing Director
Orion NZ Limited
Phone 03 363 9800