22 Aug 2014

Vector's annual net profit falls 17%

6:21 pm on 22 August 2014

Vector's annual net profit fell 17 percent, reflecting price-cutting forced on the electricity lines company by the corporate regulator.

Vector's net profit for the year ended June fell to $168.5 million with sales dropping nearly 1.6 percent to $1.26 billion.

The chairman, Michael Stiassny, said the company had a challenging year and further recent regulatory actions would put additional pressure on both dividends and investment in the regulated assets.

Nevertheless, the company had lifted its dividends for the year by a quarter of a cent to 15.25 cents per share.

That was the eighth consecutive year Vector has lifted its dividends.

Vector chief executive Simon McKenzie said the market would not be surprised by the results.

"We have faced a challenging year but we are pleased with our performance. Our financial results are in line with market expectations, our technology business continues to grow, and this demonstrates the benefits of our portfolio diversification."

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