Powerco announced the result, which corresponded to 9.7 cents per share, yesterday. The previous corresponding half-year's result was $NZ18.7 million (or 8.4 cents per share).
Company chairman Barry Upson said several positive factors had contributed to the solid performance, including synergies resulting from the purchase of the UnitedNetworks assets last October, growth of Powerco's Energy Services activity and income, and increased Australian activity.
However, there was also the "myriad of regulatory interventions", in both electricity and gas, which had resulted in significantly increased regulatory costs for the company.
Company chief executive Steven Boulton said Powerco was involved in expensive and "seemingly endless" submission processes with no less than five regulatory organisations - the Commerce Commission, Electricity Commission, Ministry of Economic Development, Parliamentary Commissioner for the Environment, and the Commerce Select Committee - looking to impose "ever-increasing" regulations on electricity and gas distributors.
Poorly designed regulation would seriously impact on the country's ability to continue sustainable investment and the maintenance of core infrastructural assets.
"Maintaining an incentivised investment environment is crucial to New Zealand's ongoing economic growth," said Boulton.
"The government must make up its mind on these matters - we can have continuing regulatory creep or we can have a productive investment environment to attract capital, but we can't have both."
The Commerce Commission yesterday said it was inviting comments on its process paper regarding the development and refining of an information disclosure regime for large electricity lines businesses. Interested parties have until November 14 to make submissions.
However, Boulton said the outlook for the next six months was positive, with significant developments in Australia and New Zealand.
"Our focus for the next six months will be to continue to increase consumer connections in New Zealand and build our presence in Tasmania, to take full advantage of the opportunities for growth of our contracting arms on both sides of the Tasman."
Construction of the backbone of the Tasmania Gas Project was due to start next month and have the first customers connected by early 2004.
Powerco was forecasting continuing growth in contract work over the next six months and had recently opened an office in Tauranga, one of New Zealand's fastest growing cities.
It also reconfirmed the forecasted $NZ53.6 million profit for 2004 financial year and total dividend for the year of 16 cents per share.
