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

 

Balance Of Trade: NZ Posts Trade Deficit In October On Falling Dairy Exports

New Zealand’s posted its largest monthly trade deficit for October in six years, while narrowing the shortfall from September, led by a fall in dairy exports to China while all main imports into the country rose. More>>

ALSO:

Gigatown Winner: Plenty Of Positives For Dunedin

Although the city has taken the Gigatown title, along with new ultrafast 1Gbps broadband and funding for $700,000 worth of UFB-related initiatives across the community, Mr Cull says Dunedin has gained so much more through its involvement. More>>

ALSO:

R18: The Warehouse Group Praised For Removing Games

The decision by New Zealand’s largest retailer The Warehouse Group (TW Group), to withdraw stocks of the latest version of Grand Theft Auto V (GTA V) and other R18 games, has been praised by advocacy group Stop Demand Foundation. More>>

ALSO:

Air NZ Wine Awards: Victory For Villa Maria As Pinot Noir Thrills

It was a night to remember as Villa Maria Estate picked up one of the highest accolades of the evening, the O-I New Zealand Reserve Wine of the Show Trophy, at the 28th Air New Zealand Wine Awards. The Villa Maria Single Vineyard Southern Clays Marlborough ... More>>

ALSO:

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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