✨ Financial Statements
4 DECEMBER 2009 NEW ZEALAND GAZETTE, No. 179 4367
Notes to and Forming Part of the Financial Statements
For the year ended 30 June 2009
GAS DIVISION
9 CONTINGENT LIABILITIES AND COMMITMENTS
As Powerco is an integrated business, this disclosure relates to the business as a whole.
CONTINGENT LIABILITIES
Contract
Powerco Limited has a contract with Tenix Alliance New Zealand Limited (Tenix), who provide electricity and gas field services. There is a condition in the contract that states that a payment is made to Tenix for performing better than budgeted and a payment is made by Powerco if performance does not meet budget. The amount of the payment is determined by a predetermined calculation in the contract on an annual basis. At this time, any payment for future periods to or from Powerco cannot be quantified.
Department of Labour
The Department of Labour (DOL) is investigating an incident involving a Tenix employee working on a Powerco asset in Palmerston North which resulted in the Tenix employee sustaining burns. The DOL has indicated there is the possibility of charges being laid against Powerco for this matter. The DOL's investigation is continuing.
Contact Energy
Contact has alleged that Powerco has overbilled $533,000 of gas network charges on the Wellington gas network between 2002 and 2006. Powerco does not believe that they have any liability for this amount.
Commitments
| 30 June 2009 | 30 June 2008 | |
|---|---|---|
| Commitments for future capital expenditure resulting from contracts entered into | NZ$000 | NZ$000 |
| Not longer than 1 year | 6,875 | 6,549 |
| Longer than 1 year and not longer than 5 years | 1,201 | 9,151 |
| Longer than 5 years | - | - |
| 8,077 | 15,680 |
10 RELATED PARTY TRANSACTIONS
Trading Transactions
Powerco Limited was a wholly owned subsidiary of BBI Networks (New Zealand) Limited (EBINNZ). On the 26 February, Powerco was sold to Powerco (NZ) Holdings Limited, of which BBI Networks (NZ) Ltd owns 42%, QIC Infrastructure Management Pty Ltd owns 28% and QPC Investments No. II Pty Ltd owns 30%.
For the year ended 30 June 2009, gas division was charged quarterly management service fees until the date of sale totalling $0.316 million (2008: $0.398 million) from BBI Networks (New Zealand) Limited.
Powerco gas division has inter-company accounts with other divisions of Powerco Ltd. The inter-company accounts are unsecured and no interest has been charged during the current period.
No expense has been recognised during the period in respect of bad or doubtful debts due from related parties.
Compensation of key management personnel
| Year ended 30 June 2009 | Year ended 30 June 2008 | |
|---|---|---|
| NZ$000 | NZ$000 | |
| The remuneration of directors and other members of key management during the year were as follows: | ||
| Short-term benefits | 561 | 477 |
| Post-employment benefits | 55 | 480 |
The remuneration of directors and key executives is determined by the remuneration committee having regard to the performance of individuals and market trends.
11 SUBSEQUENT EVENTS
As a subsequent event to 30 June 2009 balance date, Powerco executed committed term sheets and was expecting to execute facility agreements for the refinancing of the $420 million of bank facilities which expired on 4 November 2009. The expired facilities were replaced with bank debt facilities of $175 million and $245 million for 3 and 2 years respectively.
On 31 August 2009 a dividend of $3 million was paid from Powerco to Powerco NZ Holdings Limited.
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NZ Gazette 2009, No 179
✨ LLM interpretation of page content
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Gas Division Financial Statements for the year ended 30 June 2009
(continued from previous page)
💰 Finance & RevenueRevenue, Expenditure, Taxation, Financial Statements, Powerco, Gas Division, Contingent Liabilities, Commitments, Related Party Transactions, Compensation, Subsequent Events