Vector profits dip, but earnings rise

A Commerce Commission decision would allow electricity lines companies supplying some of the country's most remote, rural areas to raise their charges by as much as 15 percent. Photo / File

Auckland-based energy distributor Vector said its net profit fell by 1.3 per cent to $198.8 million in the year to June.

The company said if the impact of a 2011 one-off sale of rights to Transpower was stripped out, then its underlying net profit after tax would have risen by 16.1 per cent to $198.8m.

All Vector's operating segments generated increases in earnings before interest, tax, depreciation and amortisation (EBITDA).

Group EBITDA fell 1.4 per cent to $627.4m from $636.6m.

However, adjusting for the 2011 non-operating $42.4m contribution from the sale to Transpower of rights to use Vector's Penrose-to-Hobson Street tunnel, Vector's underlying group EBITDA rose by 5.6 per cent to $627.4m.

Net interest costs fell to $166.2m from $178.2m, reflecting lower interest rates on the floating portion of the debt portfolio, increased interest earned on deposits and the replacement of expiring debt with a lower cost $250m US private placement in 2010.

See more of Vector's financial results here.

Vector declared a final dividend of 7.5c per share for the year, unchanged from last year's final dividend.

The total dividend for the year was 14.5c, up from 14.25c declared in the previous year.

In addition to its electricity and gas distribution businesses, Vector operates fibre optic networks in Auckland and Wellington, which deliver high speed broadband services.

The company is 75.1 per cent owned by the Auckland Energy Consumer Trust, whose beneficiaries are Vector's customers in Auckland, Manukau and parts of the Papakura. Shares in Vector last traded at $2.70.