CNG saved $10.7M in overseas exchange

Press, 25 June 1983, Page 22

CNG saved $10.7M in overseas exchange

PA Auckland The amount of natural gas used to make compressed natural gas (CNG) in Auckland last year saved New Zealand $10.7 million in overseas exchange, said the chairman of Auckland Gas Company, Ltd, Sir Austin Wilson. In the annual report the amount of natural gas used to make CNG was equivalent to 26.4 M litres of petrol. It was forecast that 200,000 vehicles in the North Island would be running on CNG by 1991, and 80,000 should be supplied by Auckland Gas, he said. By 1990, in 1983 dollar terms, this could mean an

expenditure of SI4OM on vehicle conversions and building filling stations in Auckland. As previously reported, the company made a taxpaid profit of $1,527,000 in the March 31 year, an increase of $190,000, or 14.2 per cent, on the $1,337,000 profit reported for the previous year. That profit was under historic cost-accounting methods. The company has not produced current cost accounts as required by the New Zealand Society of Accountants and the auditors have qualified the accounts for that omission. Sir Austin said that cur-

rent cost accounts had not been included, as it was considered that the application of the Society of Accountants standard on CCA “would be inappropriate.” He did not elaborate. gThe historic profit was after providing $135,000 less for tax at $1,246,000, and includes a $49,000 loss from associated companies ($BOOO profit previously). The net profit represents a return of 9.4 per cent on average shareholder’s funds, a return which Sir Austin said was “well below the rate of return necessary to provide the financing of a reasonable proportion of the development of the company’s franchise area from retained earnings.” For the previous year the return was 9.6 per cent. Shareholders’ funds rose $1,100,000 to $17,330,000. Current liabilities are $840,000 higher at $7,848,000 and current assets $1,972,000 lower at $6,816,000. The current ratio fell from 1.25 to 0.86 to one. A recommended final dividend of 4c a share gives a steady annual rate of 7.5 c a share (15 per cent). The total dividend payment requires $458,454, and it is covered 3.3 times by the profit.