Monday, January 24, 2011

Floods have minimal impact on Envestra’s gas networks

The floods in Queensland and Victoria have had only minor impact on the gas distribution networks of Envestra Limited (ASX: ENV), Australia’s largest gas distributor, the company reported today.

Managing Director, Mr Ian Little, said: “Considering the extent of damage across the regions, Envestra’s gas assets have performed remarkably well.” “Supply was maintained to the vast majority of consumers throughout these devastating events,” he said.

“Some water entered the low pressure sections of the network, particularly in Ipswich, causing supply interruptions to a limited number of consumers in this area. This water has since been removed and gas supply restored to those consumers.” “The Company has inspected over 4,000 properties connected to natural gas that have been affected by the floods in Queensland, and 500 in Rochester, Victoria, with only 90 meters and 150 regulators having to be replaced.”

“While additional costs have been incurred in dealing with the emergencies, they are not expected to be material, and are unlikely to reach the level at which the Company’s insurance policy would respond ($0.5 million).” Mr Little also confirmed the impact on Envestra’s future revenues, due to businesses not being able to operate, and homes that will not be re-occupied for some time, is not expected to be material.

Mr Little praised the efforts of the employees and other workers of its major contractor, APA Asset Management, in responding to these unprecedented events. “They have made sure that the gas equipment is safe and supplies are restored as quickly as possible,” Mr Little said.

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