✨ Financial Statements
28 NOVEMBER NEW ZEALAND GAZETTE 4111
2. Taxation
| | $Thousands |
|-------------------------------|-------------|-------------|
| | 2000 | 1999 |
| Surplus before Taxation | 28,271 | 26,236 |
| Income Tax at 33% | 9,329 | 8,658 |
The Income Tax Expense has been calculated as follows:
3. Gas Entitlements
| | $Thousands |
|-------------------------------|-------------|-------------|
| | 2000 | 1999 |
| Advance Paid and Prepaid Gas Entitlements | 196,008 | 194,174 |
NGC’s entitlements to gas are:
a) Take or Pay Gas Contract
NGC has contracts with the Crown, whereby it has committed to purchase gas in annual contract quantities. The remaining commitments from 1 July 2000 to 27 June 2009 are 213 petajoules (1999, 244 petajoules).
b) Advance Paid Gas
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 an additional 94.1 petajoules of gas paid for but not taken by the Crown under its contract with Maui Mining Companies (refer 3(d) below).
The 262.5 petajoules and the 94.1 petajoules were purchased for a single payment of $235 million. As at 30 June 2000 NGC had 123 petajoules (1999, 135 petajoules) of the Advance Paid Gas remaining.
c) Gasbank I
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, was 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 the remaining 4 petajoules of this gas must be made by 20 October 2000.
d) Gasbank II
In 1992 NGC sold its entitlements to the 79.8 petajoules of the 94.1 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 Gasbank II entitlements equivalent to the amount by which NGC’s annual contract quantities are reduced up to a maximum of 79.8 petajoules.
e) Kapuni Indemnity Gas
NGC has exercised an option to purchase up to 70 petajoules of gas from Fletcher Challenge Energy starting in 2005.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2000, No 159
Gazette.govt.nz —
NZ Gazette 2000, No 159
✨ LLM interpretation of page content
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Notes to the Financial Statements of Natural Gas Corporation
(continued from previous page)
💰 Finance & RevenueFinancial Statements, Accounting Policies, Gas Wholesaling, Revenue, Expenses, Taxation