Vector, New Zealand's largest gas and electricity distributor, reported net earnings of $101.3 million, which was up by 11.6% compared to 2008 as the company reduced arrears and expenses.

"This is a good result and Vector is in sound shape", said the company's group Chief Executive Simon Mackenzie, who announced an unchanged short-term dividend of 6.5 cents a share.

Revenue was up 1.8 per cent to $621m. Due to lower debt levels and interest rates, net borrowing costs reduced by $19m. Earnings were down $3m to $310m before interest tax and amortization.

Electricity revenues increased 4.8 % to $286 million in first half, whereas, gas transport revenue increased 5.4% to $103 million the previous year.

Wholesale gas sales were up 3.3% in value at $216 million, but the effect of higher priced gas under new contracts plunged 24.9% off segment profits before interest, tax, depreciation and amortization, which decreased to $42 million.

The company would receive significant results as it involves with the Commerce Commission on price path input methodologies.