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Winter chills and a growing customer base boosted energy distributor Vector's first-quarter earnings.
After-tax profits rose from $36.4 million to $41.4 million, while sales rose from $339.3 million to $391.3 million as people used more electricity and gas to keep warm.
The rise in the earnings was also flattered by last year's relatively warmer winter.
Chairman Michael Stiassny said the company had gained customers across its electricity and gas business.
The winter and the customer additions more than offset the increase in costs arising from additional gas purchases to supply increased demand and the extra costs linked to regulation and its expanded management systems.
Stiassny said: "This is a very pleasing start to the new financial year and we will continue to look for opportunities to improve our performance."
Vector's recent commitment to buy 105 petajoules of Maui gas to 2014 under a right of first refusal process is just one such opportunity.
Vectors shares rose 6c to $2.65.
"It was a good result," said Tower Asser Management New Zealand equities manager Wayne Stechman. Meanwhile, the company was hopeful it would settle its dispute with the Commerce Commission and that the proposed deal would lead to a removal of the current regulatory hurdles.
Vector won a significant reprieve from harsh regulation last month when the commission backed away from claims that the company was earning an unreasonable return on its investments.
Instead the commission formalised arrangements requiring Vector to remove subsidies enjoyed by its Auckland domestic customers at the expense of others, particularly those in Wellington.
Vector has previously said progress made with the commission, coupled with recent initiatives by the Government to incentivise infrastructure investment, was encouraging.
