Lower costs help Horizon Energy

By Phil Boeyen, ShareChat Business News Editor

Monday 29th October 2001

Lines company Horizon Energy Distribution (NZSE: HED) says cost containment has played a part in a marked improvement in interim net profit.

The company has recorded a net surplus of $3.1 million for the six months ended September, a 29% increase on last year's $2.39 million.

Sales were relatively flat at $12.14 million compared with $11.93 million previously. HED is paying a dividend of 55 cents per share, representing 89% of the tax paid profit.

Chairman, Colin Holmes, says the profit was ahead of director's expectations and reflected internal cost containment disciplines and the settlement of significant elements of the litigation with Todd Energy.

Lower than budgeted Transpower costs also helped the result but Mr Holmes Transpower costs are expected to be close to budget for the rest of the year and he is confident the company will post a year end result in excess of $5 million.

The company is also signalling a possible further reduction in fixed line charges in reference to government guidelines. Mr Holmes says they could from 45 cents a day to 15 cents a day for domestic consumers.

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