Creating a new energy future – a bold vision
Dividend This year, shareholders will receive a final dividend of 8.50 cents per share imputed at 10.5%, taking the full-year partially imputed dividend to 16.75 cents per share. The final dividend will be paid to investors who are on the register at 9 September 2021 and distributed to investors on 16 September 2021.
customers, and at a group level as we continue to reimagine what energy systems are capable of. We’ve also continued to look outside the energy sector to find other companies that can help us achieve our goals.
“Our long-standing vision to create a new energy future is also long-term in its aspiration. We are proud of the steps we are taking along the way.
LOOKING BACK Business performance This report contains separate
performance overviews and highlights of three of our key business segments; Regulated Networks, Gas Trading, and Metering. However, this year has also seen notable developments among our other businesses. We are excited by the establishment of Vector Technology Services (VTS). VTS will be focused on taking to market key proprietary solutions to accelerate and support other companies who are on their own digital transformation journeys to have access to world leading solutions (page 8). HRV has delivered a solid result despite the challenges of Covid-19 and continues to show improvement in what is a challenging and competitive environment, making a positive financial contribution. Vector Powersmart had a challenging year that has seen a number of its projects in the Pacific Islands impacted by Covid-19 issues. However there are ever increasing opportunities arising in New Zealand as solar farms and developments expand. As such Vector Powersmart is well positioned to advise and construct these solutions in New Zealand whilst also continuing with projects in the Pacific when travel permits. Vector Fibre has delivered a steady performance over the year. High speed telecommunications services are critical to customers, and we see Vector Fibre as key to this opportunity as it leverages its fibre assets in the wholesale market.
As we summarise in this report, this strategy has enabled us to deliver a strong financial result in the face of continued disruption from Covid-19, particularly in Auckland and parts of Australia. We commend our teams who have continued to respond to customer needs with urgency, commitment and adaptiveness, even as we continue to find ways to contribute positively to the global challenge of decarbonisation. Strong earnings Vector has delivered a strong result for FY21, recording adjusted earnings before interest, tax depreciation and amortisation (adjusted EBITDA 1 ) of $513.5 million. This was up $23.5 million or 4.8% on last year’s result and is in line with guidance provided at the half-year result. Group net profit after tax was $194.6 million or $97.3 million higher than the prior year’s result due to a number of factors including higher earnings, lower interest cost, the impact of a non-cash impairment in last year’s result, and an increase in capital contributions. Total capital expenditure for the year was $529.5 million, an increase of $40.8 million or 8.3% on the prior year. The increase reflected continued investment in infrastructure to support Auckland’s growth, and, in our Australian metering business, increasing deployments of advanced meters, and increasing stock levels to counteract risks associated with global production shortages linked to Covid-19.
reliable and affordable energy solutions for customers. Over the past twelve months we have seen continued progress against our Symphony strategy across our portfolio of businesses, as they deliver for our $ 513.5 M ADJUSTED EBITDA 1 , UP $23.5 MILLION OR 4.8% ON LAST YEAR’S RESULT
1. EBITDA from continuing operations adjusted for fair value changes, associates, third-party contributions, and significant one-off gains, losses, revenues and/or expenses. Refer to Non-GAAP reconciliation on page 44.
7
Made with FlippingBook Ebook Creator