New Zealand Gazette – 2006 – No. 169

Page 4899

✨ Financial Statements



12 DECEMBER 2006
NEW ZEALAND GAZETTE, No. 169
4899

Notes to and Forming Part of the Financial Statements
For the year ended 30 June 2006

POWERCO

ELECTRICITY DIVISION

8 RELATED PARTY TRANSACTIONS

Trading Transactions

As Powerco is an integrated business, this disclosure relates to the business as a whole.

For the year ended 30 June 2006, Powerco Limited paid management fees of $458,334 (30 June 2005: nil) to Babcock & Brown Infrastructure Management Pty Limited (BBIM). BBIM are deemed to be a related party as they provide management services to Babcock & Brown Infrastructure Pty Limited (ultimate parent). Powerco is a wholly owned subsidiary of BBI Networks (New Zealand) Limited. The payment terms are: payment is required when an invoice is provided from BBIM and the amount is set in recognition of the following services being provided: executive strategic management, corporate development and asset management operational advice and direction, corporate financial advice, strategic treasury management advice, corporate revenue and risk management advice and other corporate policy formulation and advice. As at 30 June 2006, an amount of $458,334 was payable to BBIM for management fees.

Powerco Network Management Limited is a wholly owned subsidiary of Powerco. The company charges Powerco Limited at rates which reflect the quantity of services provided and the relationships between the parties, which includes the following activities:

  • Asset management $15,528,290 (30 June 2005: $15,528,290)
  • Information systems $3,908,359 (30 June 2005: $9,905,445)
  • Buildings and insurance $8,088,171 (30 June 2005: $993,752)
  • Operational finance and billing $457,425 (30 June 2005: $1,554,717)

There are no outstanding balances payable as at 30 June 2006. There are no guarantees or bad debts.

Powerco has intercompany accounts with its subsidiaries (2006: $6.735 million, 2005: $29.779 million) and an intercompany loan with Powerco Australia Group Pty Limited (2006: $30 million, 2005: $30 million)

Powerco Energy Services Limited and Powerco Energy Services Eastern Limited were wholly owned subsidiaries of Powerco Limited which provided electrical and gas contracting services for Powerco, until the date of sale of these businesses on 1 November 2005.

During the financial year, Powerco Limited received $78,661 from Energy Brokers New Zealand, which represent their surplus cash distributed.

There were no trading transactions with Powerco Holdings Limited, Powerco Australia Group Pty Limited, Powerco Tasmania Pty Limited, Powerco Energy Services Pty Limited, Option One Pty Limited, and Powerlines Limited during neither the 2005 nor 2006 financial periods.

Compensation of key management personnel

The remuneration of directors and other members of key management during the year were as follows:

30 June 2006 NZ$000 30 June 2005 NZ$000
Short-term benefits 2,352 4,011
Post employment benefits 29 42
2,381 4,053

The remuneration of directors and key executives is determined by the remuneration committee having regard to the performance of individuals and market trends.

9 RECONCILIATION OF OPERATING SURPLUS AFTER TAXATION WITH CASH INFLOW FROM OPERATING ACTIVITIES

30 June 2006 NZ$000 30 June 2005 NZ$000
Operating surplus after taxation 42,522 33,256
Add/(less) non cash items
Depreciation 38,901 37,067
Loss/(gain) on hedges (4,184) -
34,737 37,067
Movements in working capital
Accounts receivable (2,244) (2,522)
Change in prepayments 390 (458)
Tax refund due (11,076) (11,733)
Deferred taxation 13,564 -
Accounts payable (10,466) 14,191
(9,832) (52)
Net cashflow from operating activities 67,427 69,771


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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2006, No 169


Gazette.govt.nz — PDF NZ Gazette 2006, No 169




✨ LLM interpretation of page content

💰 Powerco Related Party Transactions (continued from previous page)

💰 Finance & Revenue
Management fees, Subsidiaries, Intercompany accounts, Trading transactions

💰 Compensation of Powerco Key Management Personnel

💰 Finance & Revenue
Remuneration, Directors, Key management, Short-term benefits, Post-employment benefits

💰 Reconciliation of Operating Surplus After Taxation

💰 Finance & Revenue
Cash inflow, Operating activities, Depreciation, Working capital