✨ Financial Statements
9 DECEMBER 2008
NEW ZEALAND GAZETTE, No. 191
Notes to and Forming Part of the Financial Statements
For the year ended 30 June 2008
POWERCO
GAS DIVISION
Deferred tax - temporary differences
| Property, plant & equipment NZD'000 | Cash flow hedges NZD'000 | TOTAL NZD'000 | |
|---|---|---|---|
| Balance 30 June 2006 | 25,937 | - | 25,937 |
| Charge/(credit) to the Income Statement | 5,266 | 2,041 | 7,307 |
| Charged to equity | - | 486 | 486 |
| Charge in tax rate | (2,865) | - | (2,865) |
| Balance 30 June 2007 | 28,338 | 2,527 | 30,865 |
| Charge/(credit) to the Income Statement | 7,941 | (1,640) | 6,301 |
| Charged to equity | - | (315) | (315) |
| Charge in tax rate | (660) | (106) | (766) |
| Balance 30 June 2008 | 36,499 | 1,062 | 37,561 |
3 BORROWINGS
Non-current liabilities at amortised cost
| 30 June 2008 NZD'000 | 30 June 2007 NZD'000 | |
|---|---|---|
| Subordinated bonds | 20,796 | 20,446 |
| Guaranteed bonds | 48,332 | 86,316 |
| US dollar private placement notes | 48,520 | 44,931 |
| Finance lease liabilities | 23 | 8 |
| Commercial paper facility | 32,311 | 38,609 |
| Working capital advance facility | 5,677 | - |
| 155,659 | 190,310 |
Current liabilities at amortised cost
| | (note 5) | 30 June 2008 NZD'000 | 30 June 2007 NZD'000 |
|--------------------------------------|-----------------------|-----------------------|
| Bank overdraft | | 9 | 321 |
| Commercial paper facility | | - | 32,621 |
| Commercial bank debt | | - | 5,799 |
| Working capital advance facility | | - | 4,162 |
| | | 9 | 42,903 |
(a) Subordinated bonds
| 30 June 2008 NZD'000 | 30 June 2007 NZD'000 | |
|---|---|---|
| Subordinated bonds | 21,540 | 21,390 |
| Adjustment for the fair value of the interest rate risk | (452) | (515) |
| Deferred funding costs | (279) | (419) |
| Carrying value of subordinated bonds | 20,796 | 20,446 |
$100 million of subordinated bonds were issued on 15 April 2005 and are unsecured subordinated debt obligations of Powerco Limited. They have a tenure of 5.5 years and have an interest rate of 7.04% p.a. fixed until expiry on 15 April 2010. $21.640 million (2007: $21.860 million) of subordinated bonds have been allocated to Powerco's gas division.
(b) Guaranteed bonds
| 30 June 2008 NZD'000 | 30 June 2007 NZD'000 | |
|---|---|---|
| 7 year guaranteed bonds | 21,538 | 21,679 |
| Adjustment for the fair value of the interest rate risk | (1,063) | (1,722) |
| 9 year guaranteed bonds | 21,638 | 21,679 |
| Adjustment for the fair value of the interest rate risk | (1,083) | (1,722) |
| 11 year guaranteed bonds | 10,769 | 10,839 |
| Adjustment for the fair value of the interest rate risk | (532) | (861) |
| 7 year guaranteed bonds | 29,062 | 28,183 |
| 12 year guaranteed bonds | 10,770 | 10,838 |
| 89,360 | 89,914 | |
| Deferred funding costs | (41,628) | (3,998) |
| Carrying value of guaranteed bonds | 47,732 | 85,916 |
$28 million of Guaranteed Bonds were issued on 28 March 2001 as unsecured debt obligations of Powerco Limited, which total $235.845M. They have been issued by the Powerco gas division ($28.0M/28 March 2011), Powerco electricity distribution unsecured bonds ($96.0M/28 March 2013), and 29 June 2015 (11 year bonds). The interest rates are:
- 7 year guaranteed bonds 6.22%
- 9 year guaranteed bonds 6.59%
- 11 year guaranteed bonds 6.53%
On 28 September 2006, a $190 million issue of guaranteed bonds took place, as secured unsubordinated obligations of Powerco Limited of which $187.713 million has been allocated to the Powerco gas division ($30.712M/28 September 2012), Powerco electricity distribution unsecured bonds ($80.0M/28 September 2012), and 28 September 2017 (12 year bonds). The interest rates on these bonds are fixed until maturity:
- 7 year guaranteed bonds 6.59%
- 12 year guaranteed bonds 6.74%
Under the Trust Deed documents constituting the guaranteed bonds, Powerco Limited has covenanted to ensure that if XLCA defaults on its obligations under the guaranteed bonds by failing to substantially observe or perform any of its covenants, conditions or provisions under the Trust Deed, Powerco Limited will provide a sufficient number of its subsidiaries to ensure that obligations under the guaranteed bonds by singling a subsidiary guarantee from that subsidiary or its holding company. Should there be a default arising in the payment of interest or capital and any guaranteed subsidiary fails to perform $9 of the total sum guaranteed, the Security Trustee has been vested.
The guaranteed bonds are secured against the network assets of Powerco Limited through the Security Trust Deed.
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NZ Gazette 2008, No 191
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Powerco Gas Division Financial Statements
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💰 Finance & RevenueRevenue, Expenditure, Taxation, Powerco, Gas Division