Vector has recently reviewed its overall reporting programme including an assessment of quarterly financial reporting practices across the market. As a result, we have decided to discontinue quarterly financial reporting and to adopt the practice of a number of listed companies and initiate key operational reporting for the first and third quarters.

Vector’s board confirms at this time the company is on track to achieve the upper end of analysts EBITDA forecasts for the full year.

This takes into account the gains from the cost efficiency initiatives discussed at the Company’s Annual Meeting. Vector is pleased with the implementation of this programme and the gains already realised. Further benefits of this programme will be on-going through this financial year and next.

The cost management programme focuses on Vector running a more efficient, customer orientated business, reducing costs, eliminating waste and duplication of resource across the business. The nature of our business means we will continue to incur high fixed costs and as such this programme centres on indirect and controllable costs.

Vector will maintain full financial and operations reporting, with market briefings, for the half year and annual results.

Electricity
Electricity delivered to customers through Vector’s greater Auckland and Wellington networks in the three months ended 30 September 2007 was up 0.23% to 2,985.9 gigawatt hours (GWh), against the corresponding period last year, due to a 1.3% increase in customer connections.

For the first six months of the regulatory year (commencing on 1 April), Vector is tracking within the System Average Interruption Duration Index (SAIDI) threshold for disruptions from normal operations. The severe effects on Vector’s networks from the hurricane-strength storm in the upper North Island in July 2007 has resulted in a significant increase in the SAIDI measure arising from extreme events, as measured using Vector’s methodology.

Gas
Gas volumes transported though the transmission system were 11.5% higher at 30.1 petajoules (PJ) due mainly to fixed contract deliveries for electricity generation. Gas distribution throughput was 3% lower at 6.4PJ due to the previously reported cessation of a large wood processing customer in this financial year which offset new load from connection growth.

Total natural gas sales volumes of 14.9 petajoules (PJ) were 2.6% below the previous corresponding period (pcp). A significant increase in gas sales to electricity generators was offset by the cessation of short-term, one-off sales contracts with petrochemical producers as well as slightly lower sales volumes to industrial and commercial customers.

Total gas liquids (LPG and natural gasoline) sales volumes declined by 3.1% to 30,421 tonnes. A 3.7 percent increase in OnGas cylinder and bulk LPG sales volumes was offset by lower LPG and natural gasoline sales from the Kapuni gas treatment plant as a result of reduced gas availability from the Kapuni field.

Communications
Vector Communications continues to achieve growth in all aspects of its operations.

Metering
During the September quarter, Vector and Siemens (N.Z.) established a 50:50 joint venture to deliver advanced metering technology and operational services to customers throughout New Zealand.

Click on the link below to view the operations performance summary:

Operations performance summary.pdf