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

 

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Auckland Outage: Power Mostly Restored Overnight

Vector wishes to advise that all but 324 customers have been restored overnight. These customers are spread throughout the network in small pockets. The main St Johns feeder was restored around midnight allowing most of the customers in all affected areas to have power this morning. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
More RSS  RSS
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news