Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Meridian 1H earnings beat prospectus, down 6% on last year

Meridian 1H earnings beat prospectus, down 6% on last year

Feb. 19 (BusinessDesk) – Newly NZX-listed Meridian Energy beat its prospectus forecast for earnings in the six months to Dec. 31, thanks to high inflows to hydro lakes giving the company a larger than normal share of the generation market during the period.

Underlying net profit, the company’s preferred measure of profitability because it removes distorting items, was $83 million, 6 percent lower than for the same period a year earlier, but 27.7 percent above the company’s internal half year split of the prospectus forecast, said chief executive Mark Binns in a statement to the NZX.

“Given performance to date, should inflows from this point match the assumptions in Meridian’s prospectus, full year EBITDAF would exceed the prospectus forecast by approximately 7 percent.”

Earnings before interest, tax, depreciation, amortisation and changes in the value of financial instruments (EBITDAF) was $268.2 million, 3.2 percent below the same period last year, but 6.5 percent above prospectus on the same split basis, Binns said.

Statutory net profit, at $116.9 million was 32.5 percent lower than in the same period last year, largely reflecting big swings in unrealised changes in the value of financial instruments on Meridian’s balance sheet.

The company is particularly exposed to changes in the value of the contracts governing its largest customer, the Rio Tinto-controlled aluminium smelter at Bluff.

Meridian declared a maiden dividend of 4.19 cents per share, 90 percent imputed, to the 49 percent of shareholders who took instalment receipts in its partial float in October, payable on April 15.

“With hydrology inflows 122 percent of average in Meridian’s catchments, the company was able to maintain a high generation market share (36 percent) during the period,” said Binns. The completion of the new Cook Strait cable connection, known as Pole 3, in November, had also assisted.

“In December, the upgrade resulted in the highest northward flows since 2007.”

Reflecting competitive retail market conditions and low average wholesale electricity prices, Binns said Meridian “does not foresee energy prices increasing until at least June 2015” although cost increases from the national grid and local monopoly lines networks would be passed through.

Meridian instalment receipts listed in late October at $1, traded up to $1.11 in the following days and then sank as low as 89.5 cents in early December, but have recovered since to close yesterday at $1.035.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Finance: Major Campaign To End "Gross Overtaxation Of Savings"

The campaign – which includes a special web site through which New Zealanders can e-mail their own and other MPs and party leaders – is backed by Age Concern, Consumer NZ, the Financial Services Council and the Taxpayers’ Union. More>>

ALSO:

Scoop Business: Leighton-Led WGP To Build, Manage Transmission Gully

The Wellington Gateway Partnership, led by a unit of ASX-listed Leighton Holdings, has won the $1 billion contract to build the Transmission Gully road north of Wellington. More>>

ALSO:

Gareth Morgan: The Government’s Fresh Water Policy – Revisited

Fresh water quality is the latest area to be in the sights of Gareth Morgan and his research organisation The Morgan Foundation... They found that the fresh water policy was a bit murkier than the Environment Minister let on. More>>

ALSO:

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news