Phoenix Nat­u­ral Gas

Belfast Telegraph - Business Telegraph - - News -

Phoenix Nat­u­ral Gas is the main com­pany dis­tribut­ing nat­u­ral gas in North­ern Ire­land. It is a wholly owned sub­sidiary of Phoenix Dis­tri­bu­tion Hold­ings (a com­pany reg­is­tered in Eng­land) which in turn, is wholly owned by an in­vest­ment hold­ing com­pany, Lion­rai In­vest­ments No.1. Lion­rai is jointly owned by the Util­i­ties Trust of Australia and the Group Pen­sion Fund of the Royal Bank of Scot­land.

The in­vestors in Phoenix Nat­u­ral Gas re­ceived div­i­dends in 2017 of £22.8m. This was after a year with no div­i­dends in 2016 but re­sumed a pat­tern of ear­lier years when £20m was paid in 2015.

There are now six com­pa­nies com­pet­ing to sup­ply nat­u­ral gas in NI. In 2017, there were 209,027 cus­tomers on the net­work.

Trad­ing re­sults for Phoenix Nat­u­ral Gas con­tinue to im­prove yearly. Al­low­able oper­at­ing rev­enue is de­ter­mined by the Util­ity Reg­u­la­tor and ac­tual rev­enue is ad­justable for any over or un­der-re­cov­er­ies.

Turnover in 2017 was 7% up. Oper­at­ing prof­its were 35% of turnover, com­pared to 29% in 2016. Be­fore al­lowance is made for the reval­u­a­tion of fixed as­sets, in re­cent years pre-tax losses were de­clared.

The losses were partly a re­sult of the ma­jor re­cap­i­tal­i­sa­tion of the busi­ness us­ing large amounts of bank and bond bor­row­ing, through the par­ent com­pa­nies.

Net in­ter­est costs on bor­rowed funds were nearly £19m in 2017. When cal­cu­lat­ing com­pre­hen­sive in­come, the com­pany takes ac­count of gains through an an­nual reval­u­a­tion of fixed as­sets which added £38m to pre-tax prof­its in 2017.

At the end of De­cem­ber 2017, Phoenix had in­ter­est-bear­ing loans of £280m. In ad­di­tion the com­pany had £165m of term and re­volv­ing bank fa­cil­i­ties.

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.