16 Jun 2010

Vector share price up after bottom-line boost

9:49 am on 16 June 2010

Shares in Vector rose 1.5% after the listed network operator said tax changes would boost its bottom line by $20 million this financial year.

The company says a reduction in the corporate tax rate, and changes to depreciation rules, will boost its full-year profit by $21 million, more than offsetting a $1 million reduction from changes to taxing capital contributions.

Vector's underlying profit stood at $165 million last year.

Meanwhile, Transpower will pay Vector $53 million for access to part of its electricity network to help strengthen the national transmission grid to North Auckland and Northland regions.

The payment will be made in two instalments - one in about June next year, and the second in June the year after.

Vector's share price gained 3c to $2.14 on Tuesday.