Vector has strong full year result

Vector Group has announced a strong full year result, it says is underlined by solid business performance and progress against several strategic initiatives.

“The year’s financial result sees adjusted earnings for the group before interest, tax depreciation and amortisation (adjusted EBITDA), for continuing operations, up 14% to $365.2 million, with the group net profit after tax at $79.9 million,” says Vector Group chief executive Simon Mackenzie.

“This recognises the $60.0 million impairment on our gas network announced at half year. Underlying profit (excluding impairment) was $139.9 million.

“Total capital expenditure for continuing operations was $510.1 million. Of this, $195.2 million was funded by the capital contributions customers pay for new connections on the network.”

 Vector’s board has announced an unimputed final dividend of 13 cents per share (cps), plus a special dividend of 1.75 cps, taking the full year dividend to 24 cps.

“As previously advised, we will finalise our dividend policy once the Commerce Commission’s final determination on the next regulatory period is released later this year,” says Vector.

“The sale of the remaining contracts of our natural gas business is now complete, and the conditional sale of Vector Ongas and our 60.25% shareholding in Liquigas is expected to complete in four to six months, assuming the conditions for sale are met,” it says.

“This will enable us to concentrate on playing a leading role in the energy transition, through our networks and technology solutions.”

Vector’s investment in Bluecurrent (formerly Vector Metering) has performed in line with expectations, with QIC as a joint venture partner.

“Vector Technology Solutions (VTS) has a long-term contract with Bluecurrent to provide data services and is actively pursuing offshore opportunities for the data-processing Diverge platform,” says Vector.

“Vector Fibre has performed to expectations while market conditions have impacted HRV’s financial performance.”

Vector says it has extended its strategic alliance with Amazon Web Services, and contribution to X’s (formerly Google X’s) Tapestry project, as one of a select group of global partners collaborating on next generation platforms for network management.

“We acknowledge that price increases on lines charges will occur in the new regulatory period, and that the Commerce Commission has proposed that these increases will be ‘smoothed’ over the five-year period, avoiding the potential of one-off price shocks,” the company says, adding much commentary has been on high energy prices and lack of generation to supply the energy market.

“Our long-held view is that the energy system is going through a significant transition with the need for more capacity, changing customer needs, and climate change.

“We’ve long called for an energy strategy taking a whole of system approach, rather than piecemeal approach.”

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