Free audio stream, including stories that are padlocked on our site. Listen on any device, anywhere. Updated twice daily. The audio stream takes several seconds to start on Android devices.Launch Radio player
Meridian Energy’s underlying profit after tax for the year ended June 30 was down 13% to $219.0 million, a $32.9 million fall from last year.
Meridian is one of a handful of state-owned enterprises in line for a partial sell-down if National wins the next election.
The reduction was largely driven by the increase in depreciation charges ($35.0 million) following the revaluation of Meridian’s New Zealand generation assets at 30 June 2010.
It was also due to the increase in net finance costs ($22.6 million) due to extra funding requirements to advance generation developments.
Group net profit after tax was $303.1 million, an increase of $119.1 million on last year, which included the one-off net gain of $157.4 million from the sale of the Tekapo A and B hydro stations to Genesis Energy on June 1..
Ebitdaf (earnings before interest, taxation, depreciation, amortisation and financial instruments) was $659.9 million, an increase of $18.2 million (3%) compared with the same period last year.
The result includes $28.1 million (net of legal expenses) received from Meridian’s largest customer RTA Power (New Zealand Aluminium Smelter) following a settlement concerning liability for electricity during the 2008 potline outage at the Tiwai smelter.
Other factors were flat electricity demand compounded by the Christchurch earthquakes and the warm autumn/early winter, high hydro storage levels and the loss of generation following the sale of the Tekapo A and B hydro stations.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- Court says building a business isn't part of running a business
- Pacific Edge rights offer mopped up by institutions, says underwriter
- Greece's near 200 years of financial failure, political instability
- Old council HQ in line for a multi-million dollar conversion
- Auckland Council's spending needs spotlight shone on it – Fletcher