✨ Financial Statements
NEW ZEALAND GAZETTE, No. 179
4 DECEMBER 2009
Notice 8 and Following Part of the Financial Statements
For the year ended 30 June 2009
POWERCO
GAS DIVISION
Deferred tax–temporary differences
| Property, plant & equipment NZ$(000) | Cash flow hedges NZ$(000) | TOTAL NZ$(000) | |
|---|---|---|---|
| Balance 30 June 2007 | 29,218 | 2,527 | 31,745 |
| Charged /(credited) to the Income Statement | 7,641 | (1,849) | 5,792 |
| Charged to equity | – | (319) | (319) |
| Change in tax rate | (686) | (105) | (786) |
| Balance 30 June 2008 | 36,498 | 1,062 | 37,560 |
| Charged /(credited) to the Income Statement | 4,043 | (3,643) | 400 |
| Charged to equity | – | (1,207) | (1,207) |
| Change in tax rate | – | (13,848) | (13,848) |
| Balance 30 June 2009 | 40,542 | – | 36,094 |
3 BORROWINGS
| 30 June 2009 NZ$(000) | 30 June 2008 NZ$(000) | |
|---|---|---|
| Subordinated bonds | ||
| Guaranteed bonds | 93,003 | 70,086 |
| US dollar private placement notes | 62,298 | 46,920 |
| Commercial paper debt | – | 42,980 |
| Commercial paper facility and bank drawn down under | ||
| the standby facility as part of the GP programmes | ||
| Working capital advance facility | 6,358 | 12,811 |
| 161,747 | 232,016 | |
| Bank overdraft (note 5) | 319 | 9 |
| Subordinated bonds | 22,122 | – |
| Commercial bank debt | 45,618 | – |
| Commercial paper facility and bank drawn down under | ||
| the standby facility as part of the GP programme | ||
| 32,155 | – | |
| 99,614 | 9 |
(a) Subordinated bonds
| Subordinated bonds | 30 June 2009 NZ$(000) | 30 June 2008 NZ$(000) |
|---|---|---|
| Adjustment for the fair value of the interest rate risk | ||
| 211,336 | 211,540 | |
| 807 | (465) | |
| 22,245 | 21,075 |
Deferred funding costs
| | (123) | (278) |
| | | |
| Carrying value of subordinated bonds |
| $100 million of subordinated bonds were issued on 15 April 2005 and are unsecured, subordinated obligations of Powerco Limited. They have a term to maturity of 40 years and have an interest rate of 7.84% p.a. These bonds expire on 15 April 2045. $21.498 million (2008: $27.540 million) of subordinated bonds have been allocated to Powerco’s gas division.
(b) Guaranteed bonds
| Guaranteed bonds | 30 June 2009 NZ$(000) | 30 June 2008 NZ$(000) |
|---|---|---|
| 7 year guaranteed bonds | ||
| Adjustment for the fair value of the interest rate risk | ||
| 21,437 | 21,538 | |
| 892 | (1,083) | |
| 9 year guaranteed bonds | ||
| Adjustment for the fair value of the interest rate risk | ||
| 21,437 | 21,538 | |
| 911 | (1,063) | |
| 11 year guaranteed bonds | ||
| Adjustment for the fair value of the interest rate risk | ||
| 10,719 | 16,799 | |
| 372 | (332) | |
| 7 year guaranteed bonds | ||
| 12 year guaranteed bonds | ||
| 27,655 | 28,003 | |
| 10,716 | 10,776 |
Deferred funding costs
| | (1,492) | (1,628) |
| Carrying value of Guaranteed Bonds |
$250 million of Guaranteed Bonds were issued on 29 March 2004 as unsecured joint obligations of Powerco Limited, of which $53.593 million has been allocated to the Powerco gas division (2008: $56.045 million). The scheduled repayments of interest and principal are guaranteed on an unsecured basis by US-based XL Capital Assurance Inc., a monoline bond insurance company with a financial strength rating of "AAA". The bonds have a weighted average interest rate of 6.45%:
- 7 year guaranteed bonds: 6.22%,
- 9 year guaranteed bonds: 6.39%,
- 11 year guaranteed bonds: 6.53%.
On 28 September 2006 a $150 million issue of guaranteed bonds took place, of which $48.532 million have been allocated to the Powerco gas division (2008: $48.773 million). The scheduled repayments of interest and principal payable by Powerco Limited are again guaranteed on an unsecured basis by XL Capital Assurance. The bonds expire on 28 September 2012 (7 year bonds) and 28 September 2017 (12 year bonds). The interest rates on the bonds are fixed until maturity:
- 7 year guaranteed bonds: 6.25%,
- 12 year guaranteed bonds: 6.4%.
Under the Trust Deed constituting the guaranteed bonds, Powerco Limited has covenanted to ensure that:
(i) X/(X+CA) (default on NovaChem) does not exceed 60%,
(ii) Interest cover will not be less than 2.25 times.
XL Capital Assurance Inc., upon a sufficient number of its subsidiaries guaranteeing obligations under the guaranteed bonds agreeing a substitution guarantee so that at all times the total tangible assets of Powerco Limited and all guaranteeing subsidiaries exceed 85% of the total tangible assets of the Powerco Group. As at 30 June 2009 no Subsidiary Guarantors had been executed.
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NZ Gazette 2009, No 179
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Gas Division Financial Statements for the year ended 30 June 2009
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💰 Finance & RevenueRevenue, Expenditure, Taxation, Financial Statements, Powerco, Gas Division