Horizon Energy drops joint venture

By Phil Boeyen, ShareChat Business News Editor

Friday 9th March 2001

North Island electricity lines company Horizon Energy (NZSE: HED) says a scuttled joint venture with Eastland Network shouldn't have much effect on the company's profit.

Last year the two companies announced they wanted to set up a joint venture to manage both networks, and signalled significant savings from the move.

The joint venture was originally planned to be up and running by last September however after several months the companies have terminated talks and the project is a no-go.

HED managing director, Johan Banker, won't give specifics for dropping the plan but says it's been an amicable and mutual decision not to proceed.

"There were some issues that we couldn't agree on and that's why it hasn't gone ahead," he says.

Mr Bankers says although the company won't now receive any of the targetted savings, that shouldn't materially affect HED's profit.

He says it also won't affect the company's new dividend policy of paying out between 70 and 100% of company profits.

In the half-year to the end of November HED made a profit of $2.4 million. It paid out 83% of that via a dividend of 40 cents per share.

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