Big payout by WEL Energy in offing

By Mark Reynolds

Shareholders in Hamilton-based electricity lines company WEL Energy can look forward to a big payout as the company prepares to distribute some of the $110 million it has in the bank.

The company is flush after selling its retail electricity business and an 8 per cent stake in Takapuna-based Power New Zealand last year.

Profits on those sales were a main reason for the company recording an overall profit of $113 million in its June financial year, up from $18 million a year earlier.

Chairman Sir Dryden Spring said several options to return the cash to shareholders were being looked at, but no decision had been made.

WEL paid a special dividend of $3.32 a share last year after asset sales, and will pay 69.44c a share ordinary dividend on its latest earnings.

The company has 18 million shares on issue. They are traded on the ShareMart exchange system and closed last week at $10.50 each.