The higher cost of gas has led to a reduced full-year profit for the electricity and gas distributor Vector.
Ongoing investment in infrastructure to support Auckland's growth saw Vector's total capital expenditure increase by $4.4m to $545.9m. Photo: Vector / Brett Phibb
Key numbers for the 12 months ended June compared to a year ago:
- Net profit $160.9m vs $194.6m
- Revenue $1.34bn vs $1.28bn
- Operating earnings $672.5m vs $634.3m
- Full year dividend 16.75 cents per share vs 16.75 cps
The company wrote down $40.2 million from its LPG business, which it said was due to the impact of the higher contract price of LPG from its supplier Saudi Aramco, higher Emissions Trading Scheme costs and a weaker New Zealand dollar - all of which contributed to a higher cost of gas.
This was offset by higher capital contributions, lower interest cost and a gain from selling Vector's 50 percent shareholding in Treescape.
Vector chair Jonathan Mason said it was a "steady result", with the company facing sustained supply chain and inflationary pressure.
Total capital expenditure was up $4.4m to $545.9m, due to ongoing investment in infrastructure to support Auckland's growth.
Gas earnings were down $5.5m to $21.9m due to the higher cost of LPG, but metering earnings grew $2.1m to $173.7m as a result of continued growth in advanced meter deployments in Australia and New Zealand.
Mason said there were a number of significant policy developments during 2022 that reflected the "growing urgency" around climate change with the release of New Zealand's first Emissions Reduction Plan, which would be "fundamental to the energy transition".
"Given the challenges of climate change and decarbonisation, we are continuing to find solutions that deliver to customer needs and accommodate the extra demands on the energy system of a decarbonised future in the smartest possible way," he said.
Vector chief executive Simon Mackenzie said climate change, with a greater focus on affordability from the rising cost of living, pointed to a future energy sector that needed to be different from today's.
"The energy transition will increase the criticality of network businesses into the future as more and more reliance is placed on clean energy for transport, and other industries, in order to meet carbon reduction goals," he said.