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

 

Meridian Energy pays $300m dividend

Thursday 2 November 2006

Meridian Energy pays $300m dividend

State-owned electricity generator and retailer Meridian Energy has paid the Government a $300 million dividend for the 2005-06 year.

Chairman Wayne Boyd says the company’s recent excellent financial performance and its wish to maintain an efficient balance sheet make the dividend an appropriate step.

“We are pleased to deliver this dividend to our shareholder as a result of the company’s success and as a sign of its strong prospects for the future.”

The payment follows a special dividend of $800 million paid to the Government in May, largely the result of its highly profitable foray into Australia with the sale a year ago of its Southern Hydro assets.

Under Meridian’s Statement of Corporate Intent the company’s target dividend ratio is 65 percent of net profit after tax.

However Mr Boyd says Meridian is able to pay well in excess of that amount because of the exceptional results it achieved in 2005-06 and its commitment to make the best use of shareholder funds consistent with its obligation to be as efficient and effective as its private sector competitors.

“Meridian is a successful company in terms of the value it delivers both to its customers, and to its shareholders – all the people of New Zealand. We have kept our rate of price increase at close to the rate of inflation for the last two years, and our increases are among the smallest – if not the smallest – in the market.

“At the same time we have been able to deliver more than a billion dollars in dividends to New Zealanders. That is a record to be proud of.”

Despite the dividend payments, Meridian is still well able to support its commitment to New Zealand’s leading renewable generation development programme, with several wind and hydro projects either under construction, or at varying stages in the resource consent process.

These include the 58 megawatt (MW) wind farm at White Hill in Southland and the Manapouri refurbishment currently under construction, the 210 MW West Wind wind-farm proposal near Wellington which is still awaiting an appeal decision from the Environment Court, the 630MW Project Hayes proposal in Central Otago, and the 210-250 MW tunnel-based hydro concept for the north bank of the lower Waitaki for which water consents have been lodged.

ENDS


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Grey Power: Is Disappointed To Learn Of More Bank Closures

Many older people are being left without essential services because of cost cutting and the march of modern technology. It is now expected that most banking transactions can occur via the internet or telephone. Jan Pentecost, President of the Grey Power ... More>>

ALSO:

Economy: Supply Chain On Brink Of Overload Says National Road Carriers

The New Zealand supply chain is on the brink of overload and it looks like the upcoming peak imports season may push it over the edge says National Road Carriers Association (NRC) CEO David Aitken. “Worldwide supply chains are in disarray,” says Mr Aitken. ... More>>

Retail: Supermarkets Announced As Government’s Second Market Study

The Government has today launched a market study to ensure New Zealanders are paying a fair price for groceries. More>>

ALSO:

Statistics New Zealand: Retail Sales Recover In The September 2020 Quarter

Retail sales values recorded the largest September quarter rise since the series began in 1995, Stats NZ said today. Spending on major household items, vehicles, and groceries contributed to the strong 7.4 percent ($1.8 billion) rise in total ... More>>

Kea Aerospace: New Zealand Flies Into The Stratosphere

Development has started on a solar-powered, unmanned aircraft that can fly in the stratosphere continuously for months at a time. The zero-emission aircraft will carry a suite of imagery equipment that will be game-changing for many industries, vastly ... More>>

Stats NZ: Births And Deaths: Year Ended September 2020

Births and deaths releases provide statistics on the number of births and deaths registered in New Zealand, and selected fertility and mortality rates. Key facts For the year ended September 2020: 57,753 live births and 32,670 deaths ... More>>

ALSO:


Forest & Bird: Kākāpō Wins Bird Of The Year 2020

The nation has voted and Aotearoa New Zealand has a new Bird of the Year. New Zealand’s moss-colored flightless parrot has climbed to the top-spot for the second time in Forest & Bird’s annual Te Manu Rongonui o Te Tau/Bird of the Year competition. ... More>>