WELLINGTON GAS SALES, COSTS UP

Press, Volume CV, Issue 30981, 10 February 1966, Page 17

WELLINGTON GAS SALES, COSTS UP

(New Zealand Press Association) WELLINGTON, February 9. Record gas sales by the Wellington Gas Company, Ltd., in the year ended December 31 could not offset higher manufacturing and administrative costs, resulting in a net profit 2 per cent lower at £27,288.

Latest result was £561 below last year’s tax-paid figure and £595 lower than the record 1963 profit. An unchanged 7 per cent ordinary and 5 per cent preference distribution, requiring a steady total of £23,745 is recommended. Ordinary dividend payment of £19,517 is covered 1.4 times. Depreciation provision dropped by £2399 to £92,940 but £4827 more is proved for taxation. Revenue from sales jumped by £46,507 to £963,127 but manufacturing, distribution, and general administrative costs rose by £73,692 to £793.285. Carry-forward

After provitfmg for dividlends and adding £3ll over-

provided for tax in previous years, carry-forward is £91,721 (£87,867). Shareholders’ funds are shown at £957,917 (£862,871), including steady paid-up capital of £363,370. The chairman (Mr A. T. Young) in his review says a favourable decision from the Government on the piping of Kapuni natural gas to Auckland and Wellington now seems imminent as draft service contracts with the Minister of Mines (Mr Shand) were discussed late last year. Also, the company, after careful consideration, had recently informed the Government that it was prepared to sign an agreement to take natural gas for a period of 20 years.