THE Dampier to Bunbury natural gas pipeline generates monthly income of about $23 million and gross profits of more than $16 million a month, a report by former receiver and manager Korda-Mentha has disclosed.
The report also discloses that each of the two biggest ‘shippers’, Alcoa and Alinta – now co-owners of the pipeline – pays about $7 million a month for gas shipped through the pipeline.
Other major shippers include Western Power, which pays about $3.5 million per month, and South West Cogen (a joint venture owned by Western Power and Worsley alumina), which pays about $1.2 million per month.
The data is disclosed in a report by KordaMentha partner Martin Madden lodged with the Australian Securities and Investments Commission.
The report specifies all receipts and payments by DBNGP (WA) Transmission Pty Ltd (formerly Epic Energy (WA) Transmission) from April to October 2004, when the company was in receivership.
Some prominent legal and accounting firms reaped large fees from the company during this six-month period.
Law firm Mallesons Stephen Jaques was paid a total of $3.7 million, while Clayton Utz, which advised the receivers and the incoming banks, was paid $3 million.
KordaMentha was paid $2.7 million while accounting firm Ernst & Young was paid $1.7 million.
Investment bank UBS, which had been retained by Epic Energy over an extended period, was paid $156,000 during the receivership.
Adjusting for these and other one-off costs, the report indicates that the pipeline generated a gross monthly profit, before interest, depreciation and tax expenses, of $16.5 million.
Most of this money would have been needed to service the $1.86 billion of debt owing on the pipeline.
