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Vector's first-half profit up 7 per cent

NZ Newswire logoNZ Newswire 23/02/2017

Vector, the Auckland-based electricity and gas distributor, has posted a 7 per cent gain in first-half profit, driven by stronger sales, lower finance costs and a one-time gain after a Court of Appeal ruling on a tax claim.

Profit rose to $107 million in the six months ended December 31 from $100m a year earlier, Vector said on Friday.

Sales rose to $626m from $591m.

Vector's earnings included a $15m gain as a result of a Court of Appeal judgment in its favour in a dispute with the Inland Revenue Department over payments from Transpower for access to parts of Auckland's electricity network, including a tunnel and a series of land rights.

First-half profit from continuing operations jumped 65 per cent, excluding the contribution from Vector Gas, which was sold for $952.5m with proceeds used to repay $610m of debt.

Chairman Michael Stiassny affirmed that full-year adjusted earnings before interest, tax, depreciation and amortisation would be broadly in line with the 2016 result of $473m.

Adjusted ebitda in the first half was $257m.

The company will pay a first-half dividend of 8 cents a share, up from 7.75 cents a year earlier.

Vector shares last traded at $3.25 and have gained1.6 percent in the past 12 months, lagging behind the S&P/NZX 50 Index's 15 per cent gain.

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