New Zealand Gazette – 1998 – No. 189

Page 4437

✨ Financial Statements Notes



24 NOVEMBER NEW ZEALAND GAZETTE 4437

Electricity Corporation of New Zealand Limited

Notes to the Financial Statements

1998 1997
$M $M

2. Revenue

Continuing activities

Sale of electricity 915 964
Other sales revenue - external 13 2
Other income 13 24

Total revenue from continuing activities 928 990

Other sales revenue consists primarily of contracting revenue. Other income consists primarily of ancillary service revenue.

Discontinued activities

Revenue and operating expenses from discontinued activities relate to the eight power stations sold to Contact Energy Limited (Contact) on 1 February 1996 (note 24). From 1 February to 30 September 1996, ECNZ sold electricity in relation to these stations on behalf of Contact, at nil margin.

3. Net finance costs

Loan interest 113 101
Less: Interest capitalised 13 3

                    100 98

Less: Investment income
Interest from investments 10 10
Dividends received from subsidiaries - 6

Total investment income 10 16

Net finance costs 90 82

4. Profit before taxation

Profit before taxation is stated after charging:

1998 1997
Depreciation 110 87
Research 6.4 3.0
Write down of assets 2.9 2.2
Operating lease and rental costs 2.6 2.3

Amounts received by the auditors for:
Auditing the financial statements 0.3 0.3
Other services 1.2 1.1
Directors' fees 0.3 0.3
Donations 0.2 0.1

5. Taxation

Profit before taxation 394 378
Prima facie tax at 33% 130 125

Less: Tax effect of:
Permanent differences (9) (13)
Prior year provisions no longer required (27) (1)

Taxation expense 94 111

The taxation expense is represented by:

Tax payable in respect of the current year 143 123
Deferred taxation (note 12) (49) (12)

                    94  111

There are no income tax losses carried forward and available to be set-off against future assessable income.



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✨ LLM interpretation of page content

🏭 Electricity Corporation of New Zealand Limited Statement of Financial Position (continued from previous page)

🏭 Trade, Customs & Industry
Financial Statements, Revenue, Finance Costs, Taxation, Depreciation, Research, Asset Write-Down, Lease Costs, Audit Fees, Directors' Fees, Donations