The $NZ64.23 million after-tax profit was achieved from sales of $NZ223.5 million. This compared with the previous first-half profit of $NZ53.55 million, which came from sales of $NZ229 million.
UnitedNetworks directors declared an interim dividend of 19 cents per share, up from the 17c interim dividend paid in the corresponding period last year, which will be paid on September 6.
Most of its sales came from electricity distribution, though it also has a large gas distribution and fibre optic networks business in the central business districts of New Zealand's two largest cities.
Chief executive Dan Warnock said the stronger performance resulted from lower interest rates and reduced funding costs through last year's refinancing and from lower operating costs - particularly through the sale of the contracting field services division to Siemens.
The reduction in revenue was partly offset by growth through new electricity connections, an increasing number of gas connections for residential, commercial and industrial sectors and rising gas usage; as well as increased connections to its fibre optic networks.
Despite these good signs, Mr Warnock warned that the yet-to-be-established price control regime for electricity networks was creating uncertainty regarding the sale process of UnitedNetworks.
He doubted the new regime would take effect until some time in 2003, as the Commerce Commission still had a lot of work to do.
Some commentators doubt if UnitedNetworks will be permitted to earn a 12.87% return on investment under the new regime, as it did in the year to March 2001. It is required to disclose its returns for the March 2002 year by the end of this month.
UnitedNetworks' share price has soared since its parent, American energy company Aquila (formerly the Missouri-based Utilicorp) which owns 70% of UnitedNetworks, announced it wanted to sell its Australasian assets to reduce debt load and please international ratings agencies.
Final bids for UnitedNetworks are scheduled for late this month, with the successful bidder expected to be announced in early September.
