LEADERSHIP Chairman and Group Chief Executive report
CONTINUED PROGRESS TOWARDS A NEW
Vector’s financial results for the half-year reflect our long-term investment in new energy future initiatives and the impact of Auckland growth on connections and capital expenditure. We believe the business is well positioned for the future. However, we were not satisfied with the slower than expected growth in our Technology part of the business. In particular, this was attributable to disappointing results in business, as well as the cost of establishing the new HRV Solar business ahead of its recent launch in Auckland. In metering, installations in Australia were lower than hoped for as the market waited for the Power of Choice reforms to take effect in December 2017. In addition, there was increased planned and unplanned maintenance costs in our Regulated Networks business to accommodate Auckland’s continued the E-Co Products Group’s heat pump
The six months to 31 December 2017 saw continued progress towards Vector’s ambition of creating a new and more sustainable energy future.
Simon Mackenzie — GROUP CHIEF EXECUTIVE
Michael Stiassny — CHAIRMAN
rapid growth as well as the increased need to manage the vegetation risks to energy infrastructure. All these areas will be a key focus for the second half of the financial year. Revenue was up to $676.2 million from $625.6 million, due primarily to the acquisition of E-Co Products Group on 31 March. However, Group net profit was down to $79.0 million from $107.1 million in the prior period. This is largely because of one-off items totalling $18.8 million in the prior year 1 , as well as a significant increase
1. These include a $5.3 million ($3.8 million post tax) insurance payment to Liquigas and a tax gain of $15.0 million following the Court of Appeal ruling over the tax treatment of the sale of rights to use our Penrose to Hobson Street tunnel.
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