Horizon Energy Distribution Half Year Ended 30 Sep

Preliminary Announcement
For Half Year Ended 30 September 2000
And Revised Dividend Policy

Horizon Energy Distribution Limited today reported an unaudited tax paid profit of $2.39million for the September half year. The profit was achieved on total income of $12.34million. Net assets of the Company at 30 September 2000 stood at $28.63million, after term loans of $35.25million.

The profit is $1.97million lower than the $4.36million reported for the 1999 half year, but last year’s results included abnormally high interest earnings on the proceeds of the sale of the Company’s generation and energy businesses, and proceeds from the sale of surplus assets.

Company Chairman, Colin Holmes, said operating revenue of $12.34million for the period was slightly ahead of Directors’ expectations and reflected the ongoing steady cash flows of a lines business. He said he was confident of achieving a year end result in excess of $4million.

The Directors have approved a fully imputed interim dividend of 40 cents per share. The dividend will be payable on 20 December 2000 to shareholders on the Company’s register at 15 December. The dividend payout represents 83.5% of the tax paid profit.

Mr Holmes said Directors had approved a new dividend policy and in future intended paying shareholders between 70% and 100% of annual net profit after tax. He said a review of the Company’s underlying business and financial risk profile, and of its future capital requirements had enabled the revised policy to be adopted. He said he expected the planned implementation of the joint venture with Eastland Network Limited would allow the new policy to be sustained in the foreseeable future.

JOHAN BANKERS
General Manager

Contacts: Johan Bankers Colin Holmes
General Manager Chairman
Telephone No: (07) 307 2804 Telephone No: (07) 366 4850

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