NOTES TO THE INTERIM FINANCIAL STATEMENTS
3. Significant transactions and events Significant transactions and events that have occurred during the six months to 31 December 2019: Sale of the Kapuni gas interests On 3 December 2019, Vector announced an agreement for the sale of the
Kapuni Gas Treatment Plant and related assets including Vector’s 50% interest in the Kapuni Energy Joint Venture (together “the Kapuni gas interests”) to Todd Petroleum Mining Company Limited. Vector is targeting completion by June 2020. The Kapuni gas interests are a part of Vector’s Gas Trading segment. Assets and liabilities associated with the Kapuni gas interests ($79.2 million and $25.8 million respectively) are classified and presented in the interim financial statements as a disposal group held for sale from December 2019. Depreciation and amortisation on the assets have ceased from 31 December 2019 as a result. Refer to Note 5 for details on the disposal group held for sale. Over-recovery of electricity revenue On 7 July 2017, Vector and the Commerce Commission (“the Commission”) agreed the settlement of an over-recovery of electricity revenue by Vector during the regulatory years ended 31 March 2014 and 31 March 2015. The settlement is effected through a $13.9 million (including accumulated interest of $3.8 million) price adjustment for the regulatory years ending 31 March 2019 and 31 March 2020, impacting the group’s reported revenues and interest costs for the financial years ended 30 June 2018 (3 months), and financial years ending 30 June 2019 (12 months) and 2020 (9 months). The estimated impact in the six months ended 31 December 2019 is a $4.0 million decrease in revenue (six months ended 31 December 2018: $2.1 million) and a $1.2 million increase in interest cost (six months ended 31 December 2018: $0.7 million). On 16 September 2019, the group repaid $296.6 million (USD $195.0 million) of USD senior notes. During the six months ended 31 December 2019, the group drew down a net of $375.0 million (six months ended 31 December 2018: $70.0 million) from bank facilities. Vector Limited’s final dividend for the year ended 30 June 2019 of 8.25 cents per share was paid on 16 September 2019, with a supplementary dividend of 1.46 cents per non-resident share. The total dividend paid was $82.5 million. Liquigas Limited, an associated company of the group, paid an interim dividend for the six months ended 31 December 2019 of $0.8 million to the company’s non-controlling interests.
The Commerce Commission
Debt programme
Dividends
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