Vector lifts profit despite setbacks

Vector, the utility network operator, says it is on track to beat analyst forecasts despite lower gas revenues and writing down its investment in a smart metering firm.

The owner of the Auckland electricity and gas networks and manager of the Maui gas pipeline reported a 7 per cent rise in net profits to $105.3 million for the six months to December 31.

Vector increased its interim dividend to 7c, from 6.75c in the same period a year ago.

Chief executive Simon Mackenzie said the performance of both its regulated and unregulated business was pleasing.

‘‘We have seen small and steady improvements in first half gas and electricity volume over the past two years, our smart meter business has been strengthened and our gas wholesale team has signed some significant customer and supply agreements.’’

Overall revenue climbed 0.8 per cent to $634.3m despite a $4.4m fall in revenues from its gas transportation business, partially due to the Maui gas pipeline outage. The pipeline was closed for part of October after a leak was discovered, cutting supplies to the upper North Island.

Revenue in the technology business climbed 14 per cent to $48.1m, as it rolled out more smart meters, with 316,531 meters installed by the end of 2011.

Vector took a writedown of $3.9m related to its investment in Wellington technology firm Energy Intellect, which developed smart meter technology, until shareholders approved a plan to sell the company’s assets and liquidate it in January.

Electricity, which makes up almost half of Vector’s business, saw earnings increase 4.1 per cent.

Shares in Vector closed up 4c at $2.61.