Wellington Gas writes off expenditure

Press, Volume CXV, Issue 33815, 11 April 1975, Page 12

Wellington Gas writes off expenditure

(New Zealand Press Association) WELLINGTON. The Wellington Gas Company, Ltd, has made “substantial progress” in writing-off expenditure on introducing natural gas to Wellington and on coversion of appliances, the chairman (Mr C. H. Benney) says in the annual report.

In 1968 it was reported that appliance conversion was estimated to cost the company $974,000, but because of inflation, the chairman says, the cost finally amounted to $2,031,144. Since the conversion work started $732,831 had been written off, and the amount still to be recouped from profits is $1,298,313. Apart from appliance conversion a further $751,584 was spent on a new highpressure pipeline from Tawa to the city. The Wellington Public Hospital is now using substantial quantities of gas. and a steady growth of load each year is expected. “Maybe 1975 will see some "slowing down in de-; mand, but much will depend: upon the availability ofj

1 other fuels, and our ability i to give reasonably prompt, i and efficient service,” Mr • Benney says. The accounts confirm a • net profit of $156,905 for the year to December 31. ; The profit, on which no i tax was payable was almost : twice the $Bl,OlO earned in i 1973, and reflected the beneficial impact of natural gas conversion. Last year a one-for-five ■ bonus issue was made, and the total dividend was raised from 8 per cent to 10 per : cent (10c a share). The final 7c a share is payable on April 30, ex-dividend April I 18 .

Sales revenue rose 20.8 per cent to sl.9m. The earning rate on average shareholders’ funds was 5.8 per cent. Shareholders’ funds rose $783,412 to $3. Im. Term liabilities were down $254,643, to s2.om, but current liabilities rose $118,619 to $574,072. Working capital rose $201,967 to $683,936 after stocks rose $163,680 to $430,091. Fixed assets were $746,534 higher at s2.Bm after an increase of $748,166 in the book-value of land, at 80 per cent of 1974 valuation of $1,143,040. At 210 c the ordinary shares have a dividend yield of 4.8 per cent.