Electricity volumes edged down and the amount of gas distributed fell more sharply, but Vector managed to report a 16.3% rise in full-year net profit from continuing operations to $164.9 million.
Revenue from continuing operations dropped to $1.17 billion from $1.18 billion, while earnings before interest, taxation, depreciation and amortisation (ebitda) from continuing operations rose 6.3% to $582.2 million.
Bottom-line net profit at the electricity and gas distributor for the 12 months to the end of June rose 125% to $370.5 million.
The result included the one-off gains from the sale of the company's Wellington lines business last year.
The final dividend increased to 13.75c.
Vector used the release of its result to promote its capacity to be involved in the nationwide rollout of a fibre-optic network, and also emphasised the importance of regulatory decisions to be made in the next year to 18 months.
Mr Young said the result was in line with expectations at an operating level.
"A lower-than-expected interest bill, offset by a higher tax charge and minority interests, meant reported profit came in $3.8 million ahead of expectations."
The technology division and "corporate" divisions were the strongest performers compared to Forsyth Barr forecasts, he said.
The one small question was about corporate revenue which jumped $7.4 million, he said.
"We suspect it may be the contract to operate the Wellington network which is now ending. f so, this will be treated as a one-off gain."
While no guidance was given, commentary around each business segment indicated it would be hard for Vector to replicate the result, he said.
Group chief executive Simon Mackenzie said efficiency programmes delivered full-year gross savings of $20 million and Vector had significantly improved its debt profile.
In Vector's electricity business, the amount of electricity distributed edged down 0.3%.
Mr Mackenzie said total electricity connections grew just 1%, reflecting economic conditions and falling activity in property development.
New connections were down 18.3% on last year.
Electricity revenue grew 8.8% to $533.6 million, largely due to transmission charge increases which were passed through, and some regulatory price adjustments, Mr Mackenzie said.
Lower growth resulted in some capital spending changes, with some growth projects that would otherwise have started being deferred.
Despite that the company still spent $127.7 million in new and replacement capital spending in the electricity business, and $45 million in maintenance on the network.
The impact of economic conditions included lower new connections, while in the commercial sector there had been business closures and Vector had fielded requests to re-profile gas supply contracts.
The amount of gas distributed was down 13.4%.
Vector's fibre-optic infrastructure business had nearly finished building a fibre network for Vodafone around Auckland, ahead of time and on budget, Mr Mackenzie said.
