Creating a new energy future – a bold vision
Redemption of preference shares
The shareholders of Liquigas Limited, of which the group owns 60.25%, resolved to redeem 4,427,863 non-participating, redeemable preference shares in May 2021 for a total consideration of $4.4 million, at $1 per share. $1.8 million of the consideration was paid to non-controlling interest holders in accordance with their shareholding. The $350.0 million floating rate notes, credit wrapped by MBIA Insurance Corporation were repaid on 27 October 2020. These were ref inanced as part of our ongoing debt management activities. In October 2020, Vector issued $170.0 million of wholesale bonds at a f ixed rate of 1.575% maturing in October 2026. During the year ended 30 June 2021, the group drew down a net of $360.0 million (2020: repaid a net of $245.0 million) from the bank facilities. Refer to note 20. Vector Limited’s f inal dividend for the year ended 30 June 2020 of 8.25 cents per share was paid on 21 September 2020, with a supplementary dividend of 0.44 cents per non-resident share. The total dividend paid was $82.5 million. Vector Limited’s interim dividend for the year ended 30 June 2021 of 8.25 cents per share was paid on 8 April 2021, with a supplementary dividend of 0.44 cents per non-resident share. The total dividend paid was $82.5 million. Liquigas Limited, a subsidiary of the group, paid a f inal dividend in June 2021 of $0.8 million to the company’s non-controlling interests. Vector report on three reportable segments in accordance with NZ IFRS 8 Operating Segments . These segments are reported internally to the group chief executive. This reporting is used to assess performance and make decisions about the allocation of resources. The segments are unchanged from those reported in Vector’s annual report for the year ended 30 June 2020. The segments are: Regulated Networks Auckland electricity and gas distribution services. Gas Trading Natural gas and LPG sales, storage, and transportation. Metering Metering services. Segment information is prepared and reported in accordance with Vector’s accounting policies. Intersegment transactions included in the revenues and operating expenses for each segment are on an arm’s length basis.
Debt programme
Dividends
4. Segment information Segments
Segment prof it
The measures of segment prof it reported to the group chief executive are earnings before interest and tax (EBIT) and earnings before interest, tax, depreciation, amortisation and impairments (EBITDA). Both are non-GAAP measures that do not have a standardised meaning under NZ IFRS.
Activities not reported in segments
Other activities engaged by the group comprise shared services and other business activities. Revenues generated by these activities are incidental to Vector’s operations and/or do not meet the def inition of an operating segment under NZ IFRS 8. The results for these activities are reported in the reconciliations of segment information to the group’s f inancial statements. Interest costs (net), fair value change on f inancial instruments and associates (share of net prof it/ (loss)) are not allocated to the segments.
Geographical information
The group derives the majority of the revenue from external customers in New Zealand.
Major customers
Vector engages with three major customers, each of which contribute greater than ten percent of the group’s revenue. These customers are large energy retailers. For the year ended 30 June 2021, the customers contributed $191.3 million (2020: $216.5 million), $152.4 million (2020: $159.1 million) and $135.0 million (2020: $158.5 million) respectively, which is reported across all segments.
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