Wellington, Feb 27 NZPA - New Zealand taxpayers are doing well out of the distressed sale of a stake in Powerco by Babcock and Brown Infrastructure Ltd (BBI).

And, while many shareholders are going without dividends, BBI was paid one by Powerco this week.

BBI has announced the sale of 58 percent of Powerco to Queensland Investment Corporation for $423 million, up from the 50 percent it originally planned to sell.

Accounts for Powerco filed to NZX today show Powerco will be unable to carry forward accumulated tax losses when BBI's stake falls below 49 percent.

At the December 31 balance date Powerco had $28.9m of tax losses, which gives it a future income tax saving of $8.8m.

The accounts also show that Powerco paid BBI a $5.7m dividend on February 24.

Powerco is the nation's second largest electricity and gas distribution business with more than 400,000 customers in the North Island. BBI purchased 100 percent of it in 2004.

Powerco reported a $31.47m loss for the six months to December but the company listed a range of one-offs. The operating profit of $18m is up 12.6 percent.

An unrealised loss on financial hedges of $70.7m from marking to market is included in the bottom line loss.

The accounts show a $19.4m decrease in deferred tax balances and a $3.2m loss on the sale of assets.

The contingent liabilities section of the accounts reveal that Fonterra is disputing $1.7m of charges in the 2008/09 year but no legal proceedings have been initiated.

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