Vector
Half year results
(continuting operations)
Revenue- $609.5m down 0.3pc
After tax profit- $90.8m up 17.3pc
Dividend - 6.5cps
KEY POINTS:
Auckland energy network company Vector is describing its latest half year profit of $90.8 million as "a steady result".
The company, which is majority owned by an elected community trust, is paying out a 6.5 cents per share dividend, unchanged from the same period last year.
Revenues from its continuing operations are down slightly for the six months to the end of December, at $609 million, but net profit after tax is up more than 17 per cent at $90.8 million.
While Vector was "well positioned" for the future and financially strong enough to "take advantage of opportunities that arise", it could not afford to be complacent in the current economic environment, said chief executive Simon Mackenzie.
"The continued uncertain business environment in New Zealand means we are all navigating uncharted waters. Despite this the board and management remain cautiously confident that the company's end of year financial results will be above analyst's current expectations."
Today's results announcement is complicated by the sale last year of Vector's Wellington electricity network to Hong Kong's
Cheung Kong Infrastructure for $785 million. This resulted in a sale gain of $202.9 million.
This gain, combined with the result from continuing operations and 23 days of the Wellington business operations resulted in a net profit after tax of $296.4m, compared to $90.7m the year before.
Overall electricity consumption on the Auckland network fell 1 per cent in the six months, with residential down 0.23 per cent, large commercial and industrial fell 2.35 per cent and small industrial users went up 0.35 per cent.
There was a fall of 21 per cent in new electricity connections and new gas connections fell 18 per cent from the year before.
Along with regulatory challenges, Mackenzie said a key focus for Vector was "the reliability and security of transmission and generation segments of the electricity industry".
"The vulnerability of the electricity transmission network was exposed recently, when Transpower faults on the national grid resulted in Vector being instructed by Transpower to cut electricity supply to some customers," he said.
"Vector supports the Government's recent announcement on transmission investment and clearing roadblocks to enable Transpower to proceed with critical investment in its transmission network."
Vector has been in talks with Government about getting involved in rolling out broadband networks.
