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


Strong profit fuels Meridian investment programme

Media Release

For immediate release, Friday, 21 October 2005

Strong profit fuels Meridian investment programme

State-owned power company Meridian Energy has reported an after-tax profit of $218.2 million for the year ended 30 June 2005 ­ a result it says will enable it to continue its high level of investment in new generation.

Announcing the result today, Meridian Chairman Wayne Boyd said the financial result was excellent in a year characterised by below-average inflows into the main storage lakes.

"Strong revenue growth was driven by high spot prices on the wholesale market in the latter part of the year, primarily created by thermal plant maintenance and increasing concerns over hydrology moving into winter."

Mr Boyd says the challenging hydrology and high prices reinforce the urgent need for New Zealand to grow its electricity supply.

For its part Meridian has invested more than $500 million in new generation capacity in the past five years, with more than $500 million planned for investment in new developments on the immediate horizon.

"More than any other power company Meridian has been investing heavily in new generation capacity to improve security of supply. Clearly we cannot commit to this level of development without achieving the kind of financial results that will give us the means to carry it out.

"It is critical that we can undertake projects without requiring a capital injection or underwriting from the Crown shareholder, especially as the public accounts may suffer as the economy softens."

Mr Boyd acknowledged that retail electricity prices had risen steeply in recent years, but stressed that Meridian had not repeated the same rate of increase this year as prices had reached a point which supports the company's generation development programme.

"We believe this highlights the advantages that New Zealand's renewable resources - wind and hydro ­ confer on the country as it faces the challenges of providing for future electricity needs."

Mr Boyd says Meridian has taken a renewables-only position because renewable fuels have given the country a competitive advantage for many decades, and can continue to do so at the same time as achieving a balance between social and environmental considerations.

The growing attractiveness of renewable generation was reflected in the strong interest shown by potential purchasers in the possible sale of Meridian's Australian subsidiary, Southern Hydro, said Mr Boyd.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Paymark: Lockdown Equals Slowdown For Some

The three days of lockdown for Auckland earlier this month made a clear impression on our retail spending figures. While only Auckland moved into Level 3 lockdown, the impact was felt across the country, albeit at different levels. Looking at the ... More>>

Infrastructure Commission: Te Waihanga Releases Report On Water Infrastructure

The New Zealand Infrastructure Commission, Te Waihanga’s latest discussion document highlights the importance of current reforms in the water sector. Its State of Play discussion document about water infrastructure is one of a series looking at the ... More>>

Sci-Tech: Perseverance Rover Lands On Mars – Expert Reaction

NASA has landed a car-sized rover on the red planet to search for signs of past life. The vehicle has more instruments than the four rovers preceding it, and it’s also carrying gear that could help pave the way for human exploration of Mars. The ... More>>


ASB: Quarterly Economic Forecast Predicts OCR Hike As Early As August 2022

Predictions of interest rate rises have been brought forward 12 months in ASB’s latest Quarterly Economic Forecast. Chief Economist Nick Tuffley now expects the RBNZ to begin raising the OCR from its current level of 0.25% as early as August ... More>>

ACT: Matariki Almost A Half Billion Dollar Tax On Business

“Official advice to the Government says an extra public holiday at Matariki could cost almost $450 million,” ACT Leader David Seymour can reveal. “This is a perfect example of the Prime Minister doing what’s popular versus what’s responsible. ... More>>

Genesis: Assessing 6,000 GWh Of Renewable Generation Options For Development By 2025

Genesis is assessing 6,000 GWh of renewable generation options for development after starting a closed RFP process with 11 partners. Those invited to participate offer a range of technologies as Genesis continues to execute its Future-gen strategy to ... More>>

OECD: Unemployment Rate Stable At 6.9% In December 2020, 1.7 Percentage Points Higher Than In February 2020

The OECD area unemployment rate was stable at 6.9% in December 2020, remaining 1.7 percentage points above the level observed in February 2020, before the COVID-19 pandemic hit the labour market. [1] In December, the unemployment rate was also stable ... More>>

Stats NZ: Unemployment Drops To 4.9 Percent As Employment Picks Up

The seasonally adjusted unemployment rate dropped to 4.9 percent in the December 2020 quarter, from 5.3 percent in the September 2020 quarter, Stats NZ said today. Last quarter’s unemployment rate of 5.3 percent followed the largest increase observed ... More>>