BUSINESS SEGMENT REVIEWS
GAS
TRADING
Gas Trading’s adjusted EBITDA was up strongly by 12.5% to $20.7 4 million from $18.4 million a year earlier, the result benefiting from higher production at the Kapuni Gas Treatment Plant, increased LPG sales and improved cost efficiencies at the new 9kg Bottle Swap processing plant. That said, this growth is not expected to carry into the second half of the year, due to the loss of a large natural gas customer and rising gas costs. The natural gas business experienced challenging market conditions during the period. While Kapuni field production was up 14.6% to 5.5PJ, natural gas volumes fell 9.4% to 8.7 PJ as a result of planned and unplanned gas field outages that reduced supply and provided for unprecedented market conditions. Consequently, some of our customers faced significant disruption, and we worked hard to help them mitigate their exposure. The issues related to gas constraints have raised a number of unresolved questions regarding the transparency of the market. Our LPG business performed strongly in the first half of the year. Gas liquid sales were up 8.0% to 44,020 tonnes. While Bottle Swap growth is now slowing (volumes up 1.8% on the prior period), we are now benefiting from cost efficiencies at the new plant. LPG tolling volumes were down 8.3% to 81,718 tonnes due to a lack of exports over the period.
INCREASED CAPACITY AT ONGAS BOTTLE SWAP PLANT SUPPORTING SUMMER DEMAND FOR GAS.
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4. For the breakdown of NZ IFRS changes by segment see page 21.
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