The net profit after tax and before amortisation (NPATA) figure included, for the first time, a full-period contribution from NGC, reflecting Vector's move from majority to full NGC ownership last August.
Company chairman Michael Stiassny described Vector’s interim result as “very satisfactory, one which exceeded expectations despite relatively tough trading conditions”.
Vector achieved all operating targets despite an unseasonably warm winter that resulted in lower energy consumption, reducing revenues from the electricity and gas businesses.
Vector achieved its EBITDA target by containing operating costs, Stiassny said.
Net earnings had already exceeded those forecast in the Vector IPO prospectus, of NZ$36.5 million for the full year, and reflected a NZ$5 million benefit from Vector's earlier-than-expected move to 100% ownership of NGC.
The latest half-year period included increased borrowing costs of NZ$39.3 million and an additional NZ$26.2 million of amortisation of goodwill, both a result of the acquisition of NGC.
Therefore, the results were not directly comparable to the previous period due to the full inclusion of NGC's revenues and earnings contributions, its costs, and the increased debt associated with the full acquisition.
Vector group chief executive Mark Franklin said the NGC acquisition was already providing the company with significant benefits.
It had considerably strengthened cashflows, with operating cashflows for the period amounting to NZ$218.9 million, compared with NZ$151.9 million in the previous half year.
“We also now have a broader business platform and therefore more scope to identify and pursue new business opportunities," Franklin said.
"We look forward to capitalising on this further. We are confident that we remain on track to achieve EBITDA and EBIT in line with our prospectus forecasts for the full year.”
He said he expected full-year net profit to be NZ$38-$43 million.
Franklin also said the integration of NGC into the Vector group was progressing well.
All executive and senior management roles were now in place, all gas activities were integrated into a single gas business, and all necessary refinancing had been completed, according to Franklin.
Vector was also making good progress in metering and information systems consolidation, project governance and procurement arrangements, and full integration should be completed, or be in the final stages, by the end of the year, he said.
The board declared its first dividend since Vector’s listing last August - a fully imputed interim dividend of 6 cents per share, which was a 5% increase over the prospectus forecast and 70% of NPATA.
