NZIG bonus

Press, 27 May 1981, Page 28

NZIG bonus

New Zealand Industrial Gases, Ltd, will make a two-for-11 bonus issue of shares after increasing unaudited group net profit 18.2 per cent to $1,486,000 in the six months to March 31. the directors announced yesterday. The estimated tax provision rose 17.9 per cent to $1,709,000. Sales rose 16.5 per cent to $26.3M. The directors have ' declared an unchanged interim dividend of 9c a share (9 per 'cent) payable on June 30. The directors said that during the six months demand for most industrial and medical gases was firm with carbon dioxide, Handigas and Autogas (LPG). and hydrogen showing significant growth. Demand for welding equipment and consumables was generally weak, reflecting low level of activity in the heavy engineering industry. However, towards the end of the period demand for these products improved and indications ■ are that this trend will continue throughout the rest of the financial year. "The company’s $3 million liquid nitrogen production plant at Auckland is now on stream. This 70 tonnes per day (tpd) plant brings the total oxygen/nitrogen capacity at Auckland to 120 tpd and a further 40 tpd capacity could be obtained by the installation of additional machinery. The present 120 tpd is sufficient to meet foreseeable market demands in the North Island for the next few years." the directors said. "NZIG is one of the participants in Liquigas. a company being formed to establish’the bulk nationwide distribution and storage of LPG. Planning by Liquigas for its $6O million investment is well advanced, the management team is now operational and formal incorporation of the company is imminent.

"The prospects for LPG in industrial, commercial, domestic, agricultural and automotive markets are excellent. and NZIG is preparing to share in that growth,” they said. Referring to the outlook, the chairman (Mr R. C. Mac-' donald) said: "During the last few days NZIG has expressed its confidence in New Zealand's future prosperity in a tangible form by j continuing a strong capital | investment programme, the j two most recent investments of significance being the Liquid r Nitrogen plant to be opened today and the proposed shareholding in Liquigas. "For the balance of our 1980/81 financial year I believe economic activity will slowly increase, and I expect NZIG's current profitability to be maintained through to the year end. “With export earnings being maintained, and an easing of oil price increases evident. New Zealand's external position is generally stabilising. Internally, consumer price inflation, although high, is declining and employment is increasing as construction and subcontracting on energy projects gets under way. "Business confidence is improving although this is being tempered by the view that the proposed restructuring of local manufacturing industries, together with the probable impact of Closer Economic Relations with Australia may create some problems for import substitution manufacturing companies," Mr Macdonald said.