NGC helps lift Vector profit by 18pc

Energy network company Vector says profits for the nine months to the end of March jumped nearly 18 per cent to $35.1 million.

The jump was due largely to the new inclusion of NGC in the company accounts. Vector, which is about to be partially privatised and listed on the stock exchange, bought 67 per cent of NGC last year.

This contributed $19.4 million in after tax-profits for the nine months.

Company chairman Michael Stiassny said interest payments on the debt incurred when Vector bought NGC had eaten into profits, though.

Vector's revenues, excluding NGC, were ahead of forecasts due to an unexpected increase in electricity and gas volumes. Most of Vector's profits came during the winter months, but unseasonably cold weather late last year had boosted demand for gas and electricity.

Vector's income beneficiaries - those with power accounts in Auckland City, Manukau City and Papakura - were last week asked to pre-register for a pool of shares in the upcoming initial public offering. Money raised in the float, between $600 million and $1 billion, will be used to pay down the debt incurred with the purchase of NGC last year.

Just under 25 per cent of Vector will be privatised, with the rest owned by the publicly elected Auckland Energy Consumer Trust.