Vector lifts full-year guidance after 27% first half profit jump

A large proportion of Vector's profits come from its regulated networks business. Photo supplied

Auckland lines company Vector has posted a net profit of $102.1 million for the six months to December, up 27 per cent from $80.5m in the previous corresponding period.

Vector, 75.1 per cent owned by central Auckland community trust Entrust, declared an unchanged interim dividend of 8.25c a share, 10.5 per cent imputed.

The company lifted its full-year adjusted ebitda guidance from $380m to $500m to $500m to $520m, provisional on no further Covid-19 disruption.

"Despite the uncertainties that have arisen due to Covid-19, the group has delivered a pleasing start to the 2021 financial year," chairman Jonathan Mason said.

A large proportion of the company's profits came from its regulated networks business, which increased profit 6.7 per cent to $180.7m in the first half.

Gas trading ebitda fell to $14.6m from $20.8m, largely because of lower gas volumes and margins, but also affected by the sale of Vector's Kapuni gas processing plant to Todd Petroleum Mining last year.

Total capital expenditure in the first six months was $260.7 million, up $20.7 million or 8.6 per cent on the prior period.

Chief executive Simon Mackenzie said this reflected the company's continued investment in infrastructure to support network integrity, Auckland growth, increasing deployments of advanced meters, commencement of 4G modem upgrades across New Zealand's advanced meter base, increasing stock levels to counteract risks associated with global production shortages linked to COVID-19.

"We continue to invest in cyber security working with our specialist global partners."