Vector, the Auckland-based electricity, gas and telecommunications distribution network owner, posted a 6.9 percent rise in interim after-tax profit to $105.3 million.
The result for the six months to December 31 was achieved on revenue growth of just 0.8 percent to $634.3m, to produce earnings before interest, tax, depreciation and amortisation of $323.6m, up 1.9 percent on the prior comparable period.
The company expects EBITDA for the 12 months to be "slightly ahead of analysts' expectations," said chief executive Simon Mackenzie. The company had performed pleasingly despite "fickle" economic conditions.
"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," he said.
During the period, Vector missed out on participation in the government's $1.5 billion ultra-fast broadband roll-out plan, so that its future agenda appears dominated by its traditional gas and electricity distribution businesses, smart meter installations, and its ongoing court battle with the Commerce Commission over regulated rates of return.
Gas transportation revenue fell $4.4m in the half year to $107.1m, reflecting release of a provision for contractual indemnity in the prior period, lower capital contributions, and the Maui pipeline outage in November last year.
Share of associate earnings suffered a $3.9m writedown of the 25 percent shareholding in Energy Intellect, an advanced metering and energy solutions developer, with the asset reclassified as held for sale based on the proposed sale of the company's operations.
NZN