The soon-to-be-sold gas and electricity network company announced late on Friday that it had revised downward the formerly record annual profit of NZ$55.1 million, announced in April, to NZ$27.6 million because of potential ownership changes.

“Under tax law, a significant change in shareholder continuity will lead to the company potentially losing the benefit of its accumulated income tax losses,” said chairman Barry Upson.

Powerco had sought extensive advice to ensure its actions were consistent with appropriate accounting standards and financial markets well understood how carried tax losses could be affected by changes in shareholder equity.

Recent sale announcements by the company's three major shareholders - New Plymouth District Council, Taranaki Electricity Trust and Powerco Wanganui Trust - had triggered the financial revision.

NPDC Mayor Peter Tennent was unfazed by the announcement. “The announcement will have no impact on the sale process . . . we have been aware of Powerco’s tax positions since its merger with CentralPower in 2000,” he is reported over the weekend as saying.

Upson said there would be no immediate cashflow or operational impact on Powerco, including the dividend paid to shareholders on June 18.

Meanwhile, the deadline for indicative bids for Powerco has been extended for a second time - meaning the more than 20 interested overseas and kiwi companies will have to wait a little longer to know if they have made it into the “final five”.

The deadline for indicative, non-binding bids for New Zealand’s largest gas and second largest electricity distributor was first June 11, then June 18, and now it’s June 23.

“The first extension was primarily because an information memorandum went out late. This time it’s basically because a number of offshore bidders have asked for more time; some are involved in other bid processes for other companies,” PriceWaterhouseCoopers partner Craig Rice told EnergyReview.Net from Auckland.

He declined to identify the companies that had so far made expressions of interest, apart from saying there were over 20 from North America, Asia, Australia and New Zealand.

Kiwi contenders for Powerco are believed to be Hamilton's WEL Networks, together with Hawkes Bay’s Unison, and possibly Whakatane-based Horizon Energy.

PWC is handling the sales process for NPDC, TET and PWT, which together plan to sell 53.65% of the listed New Plymouth-headquartered Powerco. Rice said up to five parties were expected to be short-listed by early July, with final binding bids due early-to-mid August.