RESULTS

Revenue for the division increased to $463.0 million, 24.5 per cent above last year’s. Earnings before interest and tax of $75.4 million were 52.6 per cent higher than the $49.4 million earned in 2005/06.

The division’s increased earnings were due to a part-year contribution from Coregas and improved performances from the other businesses.

Industrial and Medical Gases
Coregas: In February 2007 the division acquired Coregas, a major national industrial and medical gas company with operations on the Australian east coast. Earnings for the five months since acquisition were broadly in line with expectations but with some impact experienced from subdued economic activity in Coregas’ major market of New South Wales.

Air Liquide WA: Earnings were largely in line with last year’s, following a pleasing performance from its air separation unit operations.

LPG & LNG
LPG: Wesfarmers LPG increased revenue by 20.5 per cent due mainly to higher export volumes and higher Saudi contract prices. Earnings were 28.9 per cent higher than last year’s.

Kleenheat Gas: Total sales volumes increased slightly compared to last year’s through growth in the key areas of Kwik-Gas cylinder exchange, autogas, distributor and LNG sales, which were partially offset by lower traditional cylinder and bulk sales volumes. Earnings also increased over last year’s due to improved margins and better cost control.

Power Generation
enGen: Increased sales and earnings were achieved, due mainly to full year contributions from new power stations supplying a number of Western Australian regional towns and mine sites.