Vector sees profit leap to $57.8m

By ELLEN READ

Power lines company Vector has lifted annual profit to $57.8 million for the year to June 30.

The result is up 16 per cent from the $49.7 million reported for the previous period - which spanned 15 months because of a change in the company's financial year.

The Auckland Energy Consumer Trust, which owns Vector, will announce its dividend to customers by September 13 and the payment is likely to come soon after.

Last year it paid $155 to each of its 285,000 beneficiaries - a total of $44.2 million.

Connections to Vector's electricity network grew by 1.7 per cent in the year, while gas connections grew by 5 per cent. Electricity volumes rose by 2.8 per cent, and gas volumes by 5.5 per cent.

Total operating revenue for the year rose 9.3 per cent to $572 million.

Chairman Michael Stiassny said: "Vector has more than doubled in size over the last 18 months and has transformed itself from a regional electricity distributor to one of New Zealand's largest network infrastructure owners."

He said the result showed the success of the merger of the assets of UnitedNetworks, which Vector bought in November 2002.

Vector is in merger talks with listed gas transmission company NGC Holdings, but faces political controversy if any expansion leads to a dilution of public ownership.

Stiassny said Vector's future was promising.

"In terms of financial benchmarks, Vector is now in a very strong position to move forward.

"The company will continue to focus on leveraging its networks to provide integrated network solutions and cost efficiencies that benefit our customers at the same time as we explore future growth opportunities," said Stiassny.

Chief executive Mark Franklin said the 2004 financial year was one of integration and consolidation.

"The successful integration of Vector and UnitedNetworks was our main priority and this was achieved well within the set budget and time constraints," said Franklin.

"The year also saw the company, and the industry, face a number of tough challenges which included a winter energy crisis, a number of extreme storms, skill shortages and regulatory issues.

"Vector's strong result demonstrates the company's ability to deliver despite changing times."

Franklin said the company remained focused on continuing to enhance its core businesses, with improvements to service delivery, efficiency and customer service.

"With network growth expected to remain at similar or higher levels, we will continue to develop infrastructure that caters for the future and the ever-changing needs of our customers."