The Auckland-headquartered company yesterday announced an unaudited after-tax profit of NZ$36.3 million for the 2005 September quarter, down from NZ$37 million for the same period a year ago.

"The result is in line with our expectations and we are confident that we are on track to meet our year-end prospectus forecasts," chairman Michael Stiassny said.

The company's initial public offering (IPO) prospectus forecast net annual earnings to June 30, 2006, of NZ$135 million.

The first 2005-06 quarter saw Vector record earnings before interest, tax, depreciation and amortisation (EBITDA) of NZ$180.1 million and a net profit after tax but before amortisation (NPATA) of NZ$60.3 million.

Stiassny said the increase on last year, particularly in EBITDA, largely reflected the substantially increased size of the business.

"Our result is particularly difficult to compare to the same time last year given it includes the addition of NGC's operations in to the group."

While Vector continued to meet its core business operational targets during the period, it also successfully executed two major initiatives.

Vector's listing on the NZX, which was well supported by both private and institutional investors, and the successful acquisition of NGC were both important strategic moves and had positioned the company well for the future, said Stiassny.

Vector was now firmly focused on bedding down the merger between Vector and NGC, he said.

“We remain confident we are on track to complete the full integration of the two businesses by mid-next year.”

Majority owner Auckland Energy Consumer Trust sold a quarter of Vector in the NZ$593 million IPO that was used to fund the full NGC takeover.