WELLINGTON, Feb 18 (Reuters) - Vector Ltd, New Zealand's biggest electricity and gas distributor, more than doubled its first-half net profit thanks to a one-off gain from an asset sale and said year profit might beat market forecasts.
The company, which has been battling competition regulators over pricing issues, said on Wednesday it was well positioned and financially secure despite the economic slowdown.
'The board and management remain cautiously confident that the company's end of year financial results will be above analyst's current expectations,' Chief Executive Simon Mackenzie said in a statement.
Vector posted a net profit of NZ$296.4 million ($151.2 million) in the six months to Dec. 31, compared with NZ$90.8 million a year earlier.
The figure included a one off gain of NZ$203 million from the sale of its Wellington electricity network.
On a continuing operations basis, profit was NZ$90.8 million, up from NZ$77.4 million a year ago.
Vector declared an unchanged interim dividend of 6.5 cents per share.
Analysts surveyed by Reuters estimates expect a full year profit of NZ$353 million, including the gain from the Wellington asset sale.
Shares in Vector eased 2.2 percent or 5 cents to NZ$2.21. Its shares have gained 11 percent so far this year, compared with a 1.6 percent fall for the benchmark NZSX-50 index.
The company is New Zealand's biggest electricity distributor since buying a large part of United Networks in 2002 and then NGC Holdings Ltd. in 2005.
Revenue from continuing operations was flat at NZ$609.5 million, while earnings before tax, interest, depreciation and amortisation (EBITDA) increased to NZ$313.2 million.
The proceeds from the asset sale were used to pay off debt.
New Zealand's Commerce Commission is considering whether to impose price controls on the company in a long-standing dispute over whether the company has abused its monopoly position in supplying gas.
Vector has about 17,362 kilometres (10,784 miles) of electricity lines, and 10,000 kms of gas pipelines, servicing around 810,000 consumers. It has about 45 percent of the country's electricity metering market.
($1=NZ$1.96)
(Reporting by Adrian Bathgate; Editing by James Thornhill) Keywords: VECTOR/ (adrian.bathgate@reuters.com; +64-4-4714233; Reuters Messaging: adrian.bathgate.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The company, which has been battling competition regulators over pricing issues, said on Wednesday it was well positioned and financially secure despite the economic slowdown.
'The board and management remain cautiously confident that the company's end of year financial results will be above analyst's current expectations,' Chief Executive Simon Mackenzie said in a statement.
Vector posted a net profit of NZ$296.4 million ($151.2 million) in the six months to Dec. 31, compared with NZ$90.8 million a year earlier.
The figure included a one off gain of NZ$203 million from the sale of its Wellington electricity network.
On a continuing operations basis, profit was NZ$90.8 million, up from NZ$77.4 million a year ago.
Vector declared an unchanged interim dividend of 6.5 cents per share.
Analysts surveyed by Reuters estimates expect a full year profit of NZ$353 million, including the gain from the Wellington asset sale.
Shares in Vector eased 2.2 percent or 5 cents to NZ$2.21. Its shares have gained 11 percent so far this year, compared with a 1.6 percent fall for the benchmark NZSX-50 index.
The company is New Zealand's biggest electricity distributor since buying a large part of United Networks in 2002 and then NGC Holdings Ltd. in 2005.
Revenue from continuing operations was flat at NZ$609.5 million, while earnings before tax, interest, depreciation and amortisation (EBITDA) increased to NZ$313.2 million.
The proceeds from the asset sale were used to pay off debt.
New Zealand's Commerce Commission is considering whether to impose price controls on the company in a long-standing dispute over whether the company has abused its monopoly position in supplying gas.
Vector has about 17,362 kilometres (10,784 miles) of electricity lines, and 10,000 kms of gas pipelines, servicing around 810,000 consumers. It has about 45 percent of the country's electricity metering market.
($1=NZ$1.96)
(Reporting by Adrian Bathgate; Editing by James Thornhill) Keywords: VECTOR/ (adrian.bathgate@reuters.com; +64-4-4714233; Reuters Messaging: adrian.bathgate.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.