Chairman Barry Upson told the company's annual meeting in Wellington yesterday that Powerco's more favourable result for the June quarter indicated this year's earnings would outstrip last year's. Net profit was NZ$14.4 million, up from $13.1 million for the same period last year.

During last year's June quarter, the country had been in the grips of a winter energy crisis and Powerco's electricity demand and volumes were lower than expected. The June 2004 quarter, however, was a slightly colder winter, coupled with strong economic growth conditions in the Bay of Plenty, Upson said.

"The board expects that the full-year EBITDA result should exceed that of last year."

Upson also said discussions about "potential business opportunities" with NGC Holdings had been placed on hold pending the outcome of the proposed sale of 53.65% of Powerco by majority stakeholder New Plymouth District Council, the Taranaki Electricity Trust and Wanganui’s Powerco Community Trust.

Powerco understood the council expected to receive final binding bids shortly, he added, with a final decision on the sale expected by mid-August.

It is known several shortlisted bidders - believed to include Australia Gas Light Company - visited New Plymouth last week to listen to presentations by Powerco executives and to inspect some of the facilities of New Zealand’s largest gas reticulator and second biggest electricity lines company.

Upson said Powerco's directors would evaluate and seek external advice and an independent assessment of the final offer and make a recommendation to shareholders on its merits.