New Zealand energy infrastructure company Vector has posted total net profit after tax of NZ$101.7 million for the fiscal year ended June 30, 2007, up 125.7% compared to NZ$45.1 million in 2006. The company's performance was boosted by a one-off adjustment of NZ$40 million, as a result of the change in the company's deferred tax liability.
Excluding this gain, the company’s net profit after tax from underlying businesses increased 36.9% during the year, from NZ$45.1 million in 2006 to NZ$61.7 million in 2007. In addition, the company’s operating revenue in 2007 rose 19.4%, from NZ$1.13 billion in 2006 to NZ$1.35 billion.
Overall earnings before interest, taxes, depreciation and amortization (EBITDA) rose 5.4% to NZ$610 million. However, all of Vector’s businesses recorded improved EBITDA in the period, with a 3.7% increase in the electricity business to NZ$378 million and a 17.7% increase in the gas business to NZ$243.6 million.
The company’s chairman, Michael Stiassny, said Vector’s initial ventures into wind generation, through a cornerstone shareholding in NZ Windfarms and a trial of micro wind turbine technology, are a natural development for the company that also demonstrate its commitment to helping achieve New Zealand’s energy strategy objectives.
Vector is now entering a new phase in its growth. A significant part of this new phase is an intense focus on how we run our core businesses more efficiently while also looking for appropriate growth opportunities that meet the disciplines of strategic fit, our financial capacity and importantly the prevailing investment environment, commented Mr Stiassny.
Our job is to now to take the solid business platform we have established over the last five years and maximize its performance and efficiencies. We have initiated a program which is looking at both cost management to create greater value for shareholders and improved services for customers, added acting chief executive Simon Mackenzie.