New Zealand Gazette – 1999 – No. 130

Page 3142

✨ Financial Statements and Performance Measures



3142 NEW ZEALAND GAZETTE No. 130

Notes to and Forming Part of the Financial Statements
For the Year Ended 31 March 1999

12 DISCLOSURE OF PERFORMANCE MEASURES PURSUANT TO
REGULATION 15 AND PART II OF THE FIRST SCHEDULE OF THE
GAS (INFORMATION DISCLOSURE) REGULATIONS 1997

Financial Performance Measures 1999 1998 1997
(i) Return on Funds 13.56% 15.18% 8.21%
(ii) Return on Equity 13.41% 10.40% 6.33%
(iii) Return on Investment 8.95% 11.63% 8.17%

Efficiency Performance Measures
(iv) Direct Line Cost per Kilometre $2,153.56 $1,742.75 2118.03
(v) Indirect Line Cost per Gas Customer $9.44 $32.45 94.64

13 CONTINGENT LIABILITIES AND COMMITMENTS

There are no capital commitments as at balance date.

14 FINANCIAL INSTRUMENTS

(i) Credit risk

Financial instruments which potentially subject the Company to credit risk principally consist of bank balances and accounts receivable. The five largest accounts receivable balances as at 31 March 1999 comprise 93.65% of total accounts receivable. Cash deposits are only made with registered banks, no specific concerns regarding credit risk exist.

(ii) Interest Rate Risk

Interest rate risk is the risk that interest rates will change, increasing or decreasing the cost of borrowing or lending. The company’s short-term borrowings are on a floating daily interest rate. Long-term debt is funded via Powerco’s Commercial Paper program based on the Bank bill rates every 90 days. Powerco has entered into interest rate swap agreements to reduce the impact of the changes in interest rates on its Commercial Paper program. At 31 March 1999 the company had interest rate swap agreements outstanding with commercial banks. The total notional principal amount of these arrangements totalled $61.3 million with the last of these agreements maturing within 7yrs. The weighted average of these swap agreements give an interest of 7.64%.



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✨ LLM interpretation of page content

🏭 Certification of Financial Statements and Performance Measures for Powerco Limited (continued from previous page)

🏭 Trade, Customs & Industry
Gas, Financial Statements, Operating Revenue, Operating Expenses, Powerco Limited, Sales, Interest Revenue, Energy Purchases, Transmission, Personnel Costs, Human Resource Costs, Consumer Billing, Depreciation, Interest Expense, Corporate Administration, Marketing, Advertising, Consulting, Legal Expenses, Taxation, Dividends

🏭 Disclosure of Performance Measures for Powerco Limited

🏭 Trade, Customs & Industry
Financial Performance, Return on Funds, Return on Equity, Return on Investment, Efficiency Performance, Direct Line Cost, Indirect Line Cost

🏭 Contingent Liabilities and Commitments for Powerco Limited

🏭 Trade, Customs & Industry
Contingent Liabilities, Capital Commitments

🏭 Financial Instruments for Powerco Limited

🏭 Trade, Customs & Industry
Credit Risk, Interest Rate Risk, Bank Balances, Accounts Receivable, Interest Rate Swap Agreements