Mainpower Reports Successful Six Months

Media Release, Wednesday 18 February 2009

Mainpower Reports Successful Six Months

MainPower, the electricity lines company for North Canterbury and Kaikoura, has reported a successful financial and operational first half-year.

The company’s Interim Report was delivered this week to around 24,000 customers and qualifying shareholders. It highlights MainPower’s focus on promoting energy efficiency and energy conservation while maintaining, upgrading and extending its network during the half-year ended 30 September 2008.

“We invested significant funds in maintaining and strengthening our lines network during those six months,”says MainPower Chairman Gill Cox.

“We are committed to ensuring North Canterbury and Kaikoura residents enjoy a secure supply of electricity. For this reason, investment in developing renewable generation also remains a focus.”

MainPower’s applications for resource consents to build and operate a windfarm at Mt Cass, near Waipara, went before a panel of commissioners late last year, with a decision expected in the coming weeks.

“MainPower will continue to take a leadership role in promoting regional economic development in North Canterbury and Kaikoura. It is vital that we invest in infrastructure to help create jobs and secure the local economy,” says Gill Cox.

While MainPower’s unaudited after-tax profit was slightly lower, at $2.033 million ($2.424m in 2007), operating cashflow increased to $3.544 million ($2.356m).

“Given the slowdown in the local economy as a result of the deepening global financial crisis, dramatic falls in certain commodity prices and possible drought, leadership is especially important.”

“This economic slowdown will undoubtedly have some impact on our business. For example, we have already noted a fall-off in the number of new subdivisions and new connections in our area.”

“We do, however, expect MainPower’s financial performance for the full 12 months to 31 March 2009 will be in line with budget.”

During the six-month period ended 30 September, MainPower customers received $3.566 million in total rebates. Customer rebates were credited to each customer’s electricity bill. This is an increase of $132,000 from the corresponding period in 2007.

The MainPower group of companies’ total equity at 30 September 2008 was $139.090 million, up from $136.232m a year earlier.

END

For a copy of MainPower’s Interim Report visit:
http://www.mainpower.co.nz/index.cfm/1,147,0,43,html/Annual-Reports

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