Vector delivers strong half year result

• Group net profit after tax, for continuing operations, of $118 million
• Adjusted EBITDA(1) for continuing operations of $202 million, up 16%(2)
• Gross capital expenditure for continuing operations of $261 million
• Interim dividend 12 cents per share(3)

Vector Group (NZX: VCT) today announces its result for the first half of the 2025 financial year.

Vector chief executive Simon Mackenzie said: “We’re pleased to report strong financial results for the group over the past six months, with a group net profit after tax, for continuing operations, of $118 million.

“Adjusted EBITDA, which does not include the capital contributions customers pay for new connections on the network, was up 16% to $202 million.

The company will pay an unimputed interim dividend of 12 cents per share.

The board has approved revisions to the dividend policy, linking to cash flow. The intent is to align the policy with the Commerce Commission’s five-yearly regulatory cycle, as this is a large part of what determines our revenue and earnings in each five year period. The revised policy is attached to this release and is available on Vector’s website.

Mr Mackenzie said: “With the sale of Ongas and our shareholding in Liquigas, which was completed on 31 January 2025, we have now concluded a number of transactions. This is reflected in a new segment structure for our financial results, consisting of electricity, gas distribution, and other.

“Our investment in Bluecurrent continues to perform within our expected range.

“Looking forward, we’re focussed on investing in our core networks and continuing to explore growth opportunities including through Vector Technology Solutions.”

Key financial and operational information

Business segment H1 FY24 H1 FY25 % change
Electricity
- Revenue excluding contributions $344m $372m +8%
- Adjusted EBITDA $147m $172m +17%
- Total connections 620k 629k +1.5%

Gas distribution
- Revenue excluding contributions $33m $34m +3%
- Adjusted EBITDA $23m $24m +3%
- Total connections 120k 121k +0.4%

Other
- Revenue (4) $33m $31m -5%
- Adjusted EBITDA $3m $6m +75%

Outlook

For the full year, adjusted EBITDA is expected to be in the range of $400 to $415 million; gross capex to be in the range of $495 to $525 million, and capital contributions within $215 to $245 million. The current DPP3 regulatory period will end on 31 March 2025 with DPP4 starting 1 April 2025. This is the start of the new five year regulatory period as set by the Commerce Commission.


Footnotes:
1 EBITDA and Adjusted EBITDA are non-GAAP measures which the directors and management believe provide useful
information as they are used internally to evaluate performance of business units, to establish operational goals and to allocate
resources. Adjusted EBITDA excludes capital contributions. See the interim financial statements for further details or click on this link to see Vector’s policy.
2 Numbers are reported against continuing operations with the current and prior year comparatives being adjusted to exclude Natural Gas Trading which was sold on 1 July 2024; and Ongas and Vector’s shareholding in Liguigas on 31 January 2025.
3 The dividend will be paid to shareholders who are on the register at 21 March 2025, with payment made on 31 March 2025.
4 Note that capital contributions only apply to electricity and gas distribution segments.

ENDS

Vector’s interim financial statements are available here: vector.co.nz/reports.
Vector’s revised dividend policy is available here: vector.co.nz/investors/dividends.

Investor contact
Jason Hollingworth, chief financial officer
[email protected] 021 312 928

Media contact
Matt Britton, communications manager
[email protected] 021 224 2966


About Vector
Vector is an innovative New Zealand energy and digital solutions company, which runs a portfolio of businesses delivering energy, technology and communication services to more than 628,000 residential and commercial customers across New Zealand. Vector has a leading role in creating a new energy future through its Symphony strategy which puts customers at the heart of the energy system. Vector is listed on the New Zealand Stock Exchange with ticker symbol VCT. Our majority shareholder, with voting rights of 75.1%, is Entrust. For further information, visit www.vector.co.nz.

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Announcement PDF