Vector Limited (NS) Analysis

Overview

About Vector

Vector is an innovative New Zealand energy and digital solutions company, which runs a portfolio of businesses delivering energy, technology and communication services to more than 620,000 residential and commercial customers across New Zealand. Vector has a leading role in creating a new energy future through its Symphony strategy which puts customers at the heart of the energy system.

Vector’s majority shareholder, with voting rights of 75.1%, is Entrust. For further information, visit www.vector.co.nz

Vector listed on the NZSX in 2005.

Performance

The following information was extracted from Vector Limited's full year results, released on 27 August 2024:

• Adjusted EBITDA for continuing operations $365.2 million
• Total capital expenditure $510.1 million, including $195.2 million funded by the capital contributions customers pay for new connections on the network
• Group net profit after tax for continuing operations $79.9 million, inclusive of a $60 million impairment of the gas distribution business which was announced at the half year
• Final dividend 13 cents per share, plus a special dividend of 1.75 cents.(2)
• Investment in Bluecurrent (formerly Vector Metering) has performed in line with expectations
• Progress on carbon emissions reduction plan, climate change resilience, smart meter data programme, renewed partnerships with Amazon Web Services (AWS) and X (Google X), as part of our Symphony strategy

Vector Group (NZX: VCT) today announces a strong full year result underlined by solid business performance, and progress against a number of strategic initiatives.

Vector Group Chief Executive Simon Mackenzie said, “The year’s financial result sees adjusted earnings for the group before interest, tax depreciation and amortisation (adjusted EBITDA1), for continuing operations, up 14% to $365.2 million, with the group net profit after tax at $79.9 million. 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.