Vector Interim Report 2020 ― Chair and Group Chief Executive report
Milestone Kapuni transaction In early December, a key milestone for our Gas Trading business was reached with plans confirmed to transfer the Kapuni Gas Treatment Plant and associated assets to Todd Energy. The deal resets the relationship between Todd and Vector and creates strong alignment in terms of our shared interest in seeing the Kapuni field developed further. New natural gas and LPG supply agreements have been agreed as part of this deal to ensure Vector has long term access to gas products on behalf of our customers. The sale, which is due to be completed in the coming months, will not have a material impact on adjusted EBITDA for the Gas Trading business in FY20. Gas Trading business’s financial performance in the six months to 31 December saw adjusted EBITDA flat at $20.8 million. This was a good result given very challenging market conditions. Vector has entered the new decade with a refreshed Executive Leadership Team structure that will lead the Vector Group through this next stage of our journey. These changes mark a further point in our history, as ‘how’ we work evolves in line with the rapid pace of change in technology and the global challenges around decarbonisation and customer experience accelerate. In October, Vector was proud to have been named the Supreme Winner at the 2019 Diversity Awards in recognition of our commitment to integrating an inclusive culture right across our business. Vector also won the Empowerment and Diversability categories, which recognise innovative responses to gender equity and positive employment opportunities for people with disabilities. Leadership
Looking ahead Acknowledging the challenges and opportunities ahead of us, we remain committed to our vision of a new energy future and are confident we have the strategy, plan and talent in place to deliver for our customers. We acknowledge that due to our recently confirmed regulatory settings, we are limited in how much we can invest in growing and maintaining our networks to keep pace with Auckland’s rapid growth while also addressing additional pressures driven by the electrification of transport and changing customer behaviours. We remain committed to working with our stakeholders to overcome these challenges, and to targeting investment as efficiently as we can at every turn. We are pleased by our ongoing success in the New Zealand and Australian metering markets, and with progress being made in our Vector Fibre and Vector PowerSmart businesses. Our Gas businesses will continue to adapt and seek opportunities to perform well in today’s challenging market conditions.
Dame Alison Paterson Chair
Simon Mackenzie Group Chief Executive
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