NGC Bombs The Energy Industry

NGS, which generates one eighth of New Zealand’s electricity,announced its wish to quit the energy industry as it showed recently weak recovery form its recent disastrous foray into electricity retailing. It made an after-tax profit of $34.5 million for the year to June 30, a marked improvement from the year before, when it lost more than $300 million and was forced to go to its 66 per cent owner, Australian Gas Light, for a bail-out. Revenue was $709 million, reduced from the previous year's $1.24 billion by the withdrawal from electricity retailing. It wants to sell its two main power stations - a modern gas-fired station in Taranaki and its Cobb hydro station near Nelson - within the next six months by breaking them up for sale, not sell in one block. In the future the company will focus on supplying energy to businesses, not the mass market as it’s becoming an infrastructure-focused energy services company, largely centred around gas assets and gas capability and the gas market. The potential buyer of NGC stations is Genesis, the electricity retailer in Taranaki, Wanganui, Manawatu and Wairarapa. More information should appear on Friday after the Commerce Commission.