Just more than $1 million of Western Power’s $207.7 million net profit came from Integrated Power Services Pty Ltd, a company owned equally by Western Power and US oilfield services company Halliburton.
According to a Western Power spokesman, IPS’s total revenue for 2001-02 was about $30 million, $7.5 million of which was paid by Western Power for maintenance services. In the previous financial period, IPS earned $8.8 million for its work for Western Power.
The spokesman said most of IPS’s remaining revenue was for work it performed for gas distributor AGL.
During the financial year, IPS procured and transported 12 gas turbines from around the world for AGL, for the latter company to increase power generation in South Australia. IPS itself purchased labour services totalling $165,000 from Western Power last financial year.
The IPS joint venture, into which Western Power paid $350,000 in 1998, improved on its 2000-01 financial results by four times last year. IPS’s net profit before tax was nearly $3.1 million, up from the previous year’s $759,000, and Western Power’s 50 per cent share of after-tax profit was $1.07 million, up from $239,000 last year.
ANACONDA Operations, manager of the Murrin Murrin joint venture, has won a $147.6 million claim against project construction manager Fluor Australia Pty Ltd.
The arbitrators delivered the interim award covering the first stage of the arbitration process this week.
However, a successful $107.8 million award for payment on a counter claim by Fluor Australia nullified in part the success of the decision for the nickel miner.
The arbitrator determined for the Anaconda claims against Fluor relating to defects in the screening and acid leach circuits, where the majority of technical difficulties in the plant were encountered. Fluor’s claim related to the bank guarantee drawn by Anaconda and other contractual amounts previously withheld.
The next phase in the arbitration process relates to claims relating to other defects relating to the plant totally approximately $160 million.