Meridian Energy has reported stable earnings for the six months to December 31, though the sales of its Tekapo A and B hydro stations to fellow state-owned generator Genesis Energy saw profit fall 20% to $98.9 million.
This figure excludes typically volatile changes in the fair value of financial instruments, which fell $89.4 million in the half-year, reflecting non-cash impacts of Meridian’s contracts with its largest customer, the Rio Tinto aluminium smelter at Tiwai Point near Bluff.
Total revenue in the first half rose 11.7% to $1.223 billion, although this was the result of higher average wholesale power prices, which also increased Meridian’s internal cost of sales.
Energy-related expenses of $559.4 million in the most recent half compared with $394.1 million in the same period a year earlier, as the average price of electricity was 52% higher than in the prior period, at $76.23 per megawatt hour.
Underlying return on equity excluding revaluations, fell 25% to 16.2%, although chief executive of Meridian Energy, Mark Binns, said the company had increased net profit after tax by 13% on a like for like basis, excluding Tekapo assets.
“Meridian has achieved a sound financial performance during a challenging period,” he said, labelling the result a “stable” outcome.
This article is tagged with the following keywords. Find out more about MyNBR Tags
Most listened to
- Auckland Central MP Nikki Kaye discusses how to sort out Waiheke's ferry route issues
- Government vows to Turn Back the Stoats in its first salvo for the Election 2017 campaign
- Trade Me gets fewer snooping requests from govt agencies – but others report mixed results
- NBR's Jenny Ruth outlines the latest development in legal battles in the human resources world
- ‘I can’t understand what their issue is’ – TV3’s Mike McRoberts on Fairfax, NZME’s Rio Olympics boycott