Auckland based electricity and gas distributor Vector is set for a modest increase in its net profit for 2009/10, which would be in line with regulatory improvements in its pricing.The company, which reports its annual result on Friday, enjoyed a strong f
Auckland based electricity and gas distributor Vector is set for a modest increase in its net profit for 2009/10, which would be in line with regulatory improvements in its pricing.
The company, which reports its annual result on Friday, enjoyed a strong first half, with solid growth in its electricity and gas revenue.
Growth in connections to the company’ gas and electricity networks is expected to have remained strong over the second half.
Andrew Harvey-Green at Forsyth Barr said he expected Vector to report ebitda of around $582.1 million for the year, or a pre-abnormal net profit of $172.1 million. For 2008-9, Vector reported ebitda of $573.3 million and a net profit of $165.2 million.
“We expect another solid result from Vector, although there are risks around the gas wholesale business now that (Vector subsidiary) Liquigas has used its cheap Maui gas entitlements,” he said.
Fibre optic potential
Vector owns and operates electricity distribution networks in Auckland City, Manukau City and parts of the Papakura District under the Vector brand.
In the North Shore City, Waitakere City, and Rodney, Vector operates under the UnitedNetworks brand.
It has fibre-optic broadband communications networks in Auckland and Wellington.
The Government’s $1.5 billion fibre initiative presents a significant growth opportunity for the business, but it will be some time before contracts under this scheme will be awarded.
Vector is 75.1% owned by the Auckland Energy Consumer Trust.
