Welgas to benefit

Press, 20 July 1984, Page 8

Welgas to benefit

PA Wellington Welgas Holdings, Ltd, was looking forward to co-oper-ating with the new Minister of Energy for further development of its products, said the chairman, Mr Trevor Beyer, at the annual meeting yesterday. This was because of the incoming Labour Government’s stated emphasis on a continuing alternative fuels policy. Welgas looked forward to further strengthening in the compressed natural gas (CNG) and liquid petroleum gas (LPG) markets — with the national tally of CNGpowered vehicles expected to rise to about 60,000 this month, he said.

“Shareholders will be

aware that the group is active in this field, and given the significance of Government’s programme to reduce imported fuels, growth prospects are encouraging.”

The devaluation of the New Zealand dollar did not harm the company, as all its commitments had been covered.

The devaluation would benefit the future price competitiveness of CNG, and help strengthen its market, he said.

The company was pleased with its increasing ability to derive revenue from areas other than direct supply of natural gas. For the 1983 year, 25 per cent of business was in Welgas’s new markets, and for

1984, the level had increased to 58 per cent.

The development of the group’s ability to grow in areas not subject to price control was important, he said.

Shareholders voted unanimously to split the company’s 100 c shares into 50c units — an appropriate move in view of Welgas’s share price, Mr Beyer said. And they approved a doubling of its authorised capital from SSM to SIOM — a step in line the company’s expansion.

Shareholders also passed a special resolution for $1,702,500 from the share premium account to be available for cash distribution to shareholders. Mr Beyer said the company was beginning to run dry of such dividend sources.