KEY POINTS:
The boss of energy networks company Vector is stepping down.
Chief executive Mark Franklin will remain with the company for several weeks to ensure an orderly hand-over, Vector board chairman Michael Stiassny said today.
Chief operating officer Simon Mackenzie would be acting CEO while the company searched for a replacement.
Mr Franklin felt it was time to seek a change and new challenges after 4-1/2 years in the chief executive role, Mr Stiassny said.
With a recently refreshed board in place, the company was well positioned to go forward to the next level.
"Mark has done a good job of bringing together United Networks and Vector and then merging NGC into the operation, as well as overseeing Vector's initial public offering, and has subsequently consolidated the company's position," Mr Stiassny said.
"The company has a solid platform, with a forecast full year net profit up at least 28 per cent on last year and Standard & Poors revising its outlook to stable from negative in affirming its BBB+ rating."
Mr Stiassny said he expected the company would have no problem attracting high-calibre candidates for the chief executive position for Vector's next stage of development.
Vector has been through a messy period in the past year which included the abrupt resignation in December of three directors -- prominent businessmen Tony Gibbs of Guinness Peat Group, Pumpkin Patch chief executive Greg Muir and John Goulter, former managing director of Auckland Airport.
They said they took the action because of concern with the governance of the company and they expressed no confidence in the leadership of Mr Stiassny.
In March, Abano Healthcare chairwoman and Reserve Bank deputy chairwoman Alison Paterson was appointed to the Vector board.
She was followed in May by business heavyweights Hugh Fletcher, Tony Carter and Peter Bird.
At that time Mr Stiassny said the latest appointments restored the Vector board to its full strength.
On the same day Vector also announced the resignation after four years of chief financial officer Peter Fredricson. The company said he was considering his next career move.
Even before the board changes, Vector was caught up in a pricing debate with the Commerce Commission.
Last August the regulator threatened to take control of Vector's pricing, saying the Auckland-based company had abused its monopoly position and favoured its local customers, who control 75 per cent of the company.
In February the company announced plans to rebalance its electricity line charges.
When S&P announced its ratings revision of Vector last month, it said the improved outlook was partly due to the greater regulatory certainty following the commission's acceptance in principle of Vector's settlement offer.
In the nine months to March 31, Vector reported a net profit after tax up 18.4 per cent to $39.6 million.
For the nine months, earnings before interest, tax, depreciation and amortisation was 8.6 per cent ahead of the same period last year at $456.7m.
Natural gas sales volume growth of almost 55 per cent during the nine months was a major factor in a 24.5 per cent increase in revenue to $1 billion.
- NZPA
