NZ's Natural Gas Corp. back in black

WELLINGTON, New Zealand (CNN) -- New Zealand gas supplier Natural Gas Corporation has returned to profit, posting full-year earnings of NZ$34.5 million ($16.1 million) after a loss of NZ$301.6 million ($141 million) last year.

NGC, which is owned by the Australian energy company AGL, also announced it was selling its gas retailing and power generation businesses to concentrate on gas and LPG transportation and supply.

NGC withdrew from electricity retailing in New Zealand last year. It has a marketing alliance with Genesis Power, which uses NGC gas to supply retail customers.

NGC chairman Greg Martin, who is also chief executive of AGL, said Tuesday the profit result was founded on an "outstanding performance" by NGC's natural gas trading business, strong results from gas transportation and metering activities, and a steady contribution from LPG trading.

Importance of gas reserves

NGC said the strong demand for natural gas, particularly during the hydro-electricity shortages during New Zealand's 2001 winter, showed the importance of the country's gas reserves.

NGC owns the 360 megawatt (MW) Taranaki combined cycle power station at Stratford and the 32MW Cobb hydro station near Nelson. It also has 50 percent stakes in the 118MW Southdown power station and a 25MW cogeneration plant associated with its gas treatment plant at Kapuni.

According to NGC, the combined output of these plants represents about 12 percent of New Zealand's power demand.

Shares in NGC are trading 1.6 percent higher at NZ$1.24 in afternoon trade Tuesday.