Strategic reports
“Decarbonisation is the biggest challenge the industry has faced. We must build smarter, more affordable, efficient systems with more customer choice.”
Jonathan Mason, Chair
SIMON MACKENZIE GROUP CHIEF EXECUTIVE
JONATHAN MASON CHAIR
SALE OF VECTOR METERING
the long term, to increased returns from the unregulated side of Vector’s investment portfolio. We have a track record of collaborating with innovative global companies such as Amazon Web Services (AWS) and X (formerly Google X). The QIC transaction is now the latest example of Vector choosing to grow a business with a partner of high calibre. With the backing of both Vector and QIC, Vector Metering is well placed to accelerate growth opportunities and continue providing data services that enable new and innovative retail products. These will give customers large and small the ability to make smarter decisions and deliver future- ready energy solutions. $1.75b sale price for 50% interest in Vector Metering The sale, which was completed on 30 June 2023, resulted in a one-off gain of $1,509.9 million. This has allowed Vector to repay debt, with gearing falling to 33.1% from 58.2% at 30 June 2022. Standard & Poor’s (S&P) has recognised the strengthening of Vector’s balance sheet by increasing our credit rating to BBB+ with a positive outlook.
We’re also pleased to have secured an A$1.6 billion Climate Bonds Certified green loan for the Vector Metering joint venture and its ongoing smart metering expansion. Helping to place this green loan demonstrates our commitment to driving the transition to a low-carbon economy and promoting energy efficiency and emissions reductions in the energy systems through advanced metering infrastructure. We’ve retained 100% ownership of Vector Technology Solutions (VTS), and the industry-leading energy data platform called Diverge that was jointly developed under the strategic alliance between Vector and AWS. While ownership of Diverge stays with the Vector group, Vector Metering will have exclusive rights to use this platform to provide metering data services in the New Zealand and Australian markets.
Fourteen years ago when Vector signed the first smart metering business contract, it may not have been obvious to everyone how important smart meters would become. However, our forward- thinking strategy to establish and grow a highly successful metering business has proved the right call for Vector, strongly validated by the $1.75 billion received from the sale of a 50% interest in the business. The transaction is an undeniable Kiwi business success story in a global market. We are proud of what we’ve achieved and excited for future growth and innovation of the new entity, which is set to contribute, over
“The transaction is an undeniable Kiwi business success story in a global market.”
Simon Mackenzie, Group Chief Executive
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