New Zealand Gazette – 1998 – No. 194

Page 4602

✨ Financial Statements



4602
NEW ZEALAND GAZETTE
No. 194

  1. Revenue and Surplus Before Taxation

    During the year certain aspects of the Kapuni Gas contract dispute with the Kapuni Mining Companies were settled. This included a claim for damages by NGC against Kapuni Mining Companies being settled for $4.5 million which is included in Revenue. Also included in revenue is the transfer of 25 petajoules of Prepaid Gas Entitlements to Methanex.

    Surplus before taxation includes a profit of $8.75 million from the sale of 25 petajoules of Prepaid Gas Entitlements.

  2. Income Tax

    The Income Tax Expense has been calculated as follows:

    $Thousands 1998 $Thousands 1997
    Surplus before Taxation 43,821 33,625
    Income Tax at 33% 14,461 11,096

  3. Gas Entitlements

    Advance Paid and Prepaid Gas Entitlements

    $Thousands 1998 $Thousands 1997
    182,833 209,183

    NGC’s entitlements to gas are:

    NGC has Take or Pay Gas Contracts with the Crown, whereby it has committed to purchase gas in annual contract quantities. The remaining commitments from 1 July 1998 to 30 September 2009 are 272 petajoules (1997, 299.5 petajoules).

    NGC purchased, from the Crown, 262.5 petajoules of Maui gas to be delivered in annual scheduled entitlements up to 2009 for a single advance payment. This gas is referred to as Advance Paid Gas and requires no further payment to the Crown when delivery is taken except for payment of the energy resource levy. NGC takes approximately one unit of Advance Paid Gas for every two units purchased under its take or pay contract with the Crown. At the same time NGC obtained access to an additional 79.8 petajoules of gas paid for but not taken by the Crown under its contract with Maui Mining Companies.

    The 262.5 petajoules and the 79.8 petajoules were purchased for a single payment of $235 million. As at 30 June 1998 NGC had 148 petajoules (1997, 167 petajoules) of the Advance Paid Gas remaining.

    NGC has entered into an agreement with Fletcher Challenge, whereby Fletcher Challenge undertook to purchase from NGC, if requested, all of NGC’s Maui gas paid for but not taken in each contract year up to the year 30 September 1996. NGC, at its option, will be able to repurchase all or any of these gas entitlements at the original selling price plus holding costs. This arrangement has now concluded and NGC has given notice that it will repurchase the 12.3 petajoules of gas under this arrangement. Final payment for this gas must be made by 20 October 2000.

    In 1992 NGC sold its entitlements to the 79.8 petajoules (referred to above) to Fletcher Challenge for $22 million. NGC retains the right at all times to uplift all or any part of the 79.8 petajoules for the original price of $22 million plus holding costs. In the event of any redetermination of the Maui field resulting in a reduction in NGC’s annual contract quantities, Fletcher Challenge will transfer back at no cost to NGC, the gas entitlements equivalent to the amount by which NGC’s annual contract quantities are reduced up to a maximum of 79.8 petajoules.

    NGC has an option with Fletcher Challenge to purchase up to 65 petajoules of gas. NGC must give notice that it intends to exercise this option by 1 April 2000.



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✨ LLM interpretation of page content

🏭 Natural Gas Corporation Financial Position Statement (continued from previous page)

🏭 Trade, Customs & Industry
Financial Position, Gas Entitlements, Assets, Liabilities, Equity