✨ Financial Statements
Notes to and Forming Part of the Financial Statements
For the year ended 30 June 2006
POWERCO
GAS DIVISION
9 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 Beihock & Brown Infrastructure Management Pty Limited (BBIM). BBIM are deemed to be a related party of Powerco as the two parties have a director in common.
Payments for the provision of services to Babcock & Brown Infrastructure Pty Limited (ultimate parent) from BBIM comprise of services of BBI Network (New Zealand) Limited. These payment terms are payment is required when an invoice is provided from BBIM and the amount is set in respect 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 $15,626,290 (30 June 2005: $15,628,290)
- Information systems $3,808,359 (30 June 2005: $9,905,445)
- Buildings and insurance $3,068,171 (30 June 2005: $933,702)
- 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 $373,681 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
| 30 June 2006 | 30 June 2005 | |
|---|---|---|
| NZ$000 | NZ$000 |
The remuneration of directors and other members of key management during the year were as follows:
| Short-term benefits | 2,352 | 4,011 |
| Post employment benefits | 70 | 62 |
| | 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.
Next Page →
Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2006, No 170
Gazette.govt.nz —
NZ Gazette 2006, No 170
✨ LLM interpretation of page content
💰
Powerco Gas Division Financial Statements
(continued from previous page)
💰 Finance & RevenueFinancial Statements, Revenue, Expenditure, Taxation, Borrowings, Powerco, Gas Division