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Integration of NGC's Gas Business Pays Off for Vector
22 March 2006 - Energy networks operator Vector says it is gaining significant benefits from full takeover of gas pipeline company NGC.
Auckland-based energy networks company Vector says significant benefits are already flowing from last year's full acquisition of gas pipelines company NGC.
Vector Group CEO Mark Franklin says the takeover of NGC last September has considerably strengthened cash flows in the six month period to 31 December 2005.
Operating cash flows for the period amounted to $218.9 million compared with $151.9 million in the previous half year, he says.
Vector also now has a broader business platform and more scope to and pursue new business opportunities.
Mr Franklin says the company is on track with the integration of Vector and NGC.
“The integration of the two companies is progressing well, with all executive and senior management roles now in place. We have already integrated all gas activities into a single gas business”, he says.
Vector announced an unaudited net profit after-tax and before amortisation (NPATA) of $86 million for the six-month period to 31 December 2005, 33% ahead of the same period last year.
Mr Franklin says, “We have achieved all of our operating targets despite an unseasonably warm winter, which resulted in lower energy consumption and, therefore, reduced revenues from our electricity and gas businesses.”
However, this was partially offset by operating cost containment.
