Vector reports solid financials, leadership change despite impairment

Vector Limited announced a solid financial performance for the year ending June 30, 2025, with adjusted EBITDA from continuing operations increasing by 16%. Group net profit after tax from continuing operations was NZ$154.7 million, which includes a NZ$37 million impairment of the gas distribution business due to market uncertainty and rising costs. The company declared an unimputed final dividend of 13 cents per share, bringing the full-year dividend to 25 cents per share.

The company entered a new five-year regulatory cycle (DPP4) on April 1, 2025, leading to higher allowable revenue for transmission and distribution businesses. This has resulted in price increases on power bills, though electricity lines charges remain similar in real terms to a decade ago, making up about 27% of the total bill. Simon Mackenzie, group chief executive for 17 years, announced his departure, with Chris Blenkiron appointed as the new group chief executive, effective December 2025.

Vector continues its focus on network resilience, having inspected over 2,000km of network using drones and completing 12 CBD projects. The company also achieved its 2030 target to reduce scope 1 and 2 emissions by 53.5% as of June 30, 2025, primarily through innovation and proactive leak identification in its gas network.