Meridian Energy [NZX: MEL], the country's largest listed power company, sold its Californian solar plant for an undisclosed sum, wrapping up its exit from the US energy market.
The Wellington-based company sold its CalRENEW-1 plant to California-based SunEdison, it said in a statement. The plant was the biggest asset of Meridian's US subsidiary, which owed the parent $27 million in related party loans as at June 30 last year. Meridian wore a $2 million impairment charge on the loan in the 2013 financial year, having written down the loan by $27.4 million a year earlier.
"Since a decision was made to exit the US market to focus on our operations in New Zealand and Australia, we have been working hard to wind up and sell all of the parts of our US subsidiary," Meridian general manager external relations Guy Waipara said. "This knowledge about utility-scale solar and its possibilities is reflected in the focus we have on promoting solar with our customers for residential and commercial use in New Zealand."
In February, Meridian reported a 6 percent increase in underlying earnings to $83 million, beating the forecast in last year's offer document, with high inflows to hydro-lakes swelling its generation in the period.
The company's instalment receipts, which convert to ordinary shares in May 2015, fell 0.8 percent to $1.20, and have gained 16 percent this year.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- Trump encourages Russian hackers to release Clinton emails
- Trustpower tax ruling: Government needs to act to clarify law for other firms
- While you were sleeping: Dollar gains on Fed
- Freightways chief pooh-poohs suggestion of headwinds
- Suburban intensification and sprawl outside city boundary - Unitary Plan
Most listened to
- Government will need to tidy up tax law in wake of Trustpower case, says Deloitte New Zealand tax partner Greg Haddon
- Abano CEO Richard Keys on why his company doesn't have to pay top dollar for dental practices
- Nevil Gibson's Carry On has the latest on airlines, aircraft and route news of the week
- The Unitary Plan will change the face of Auckland. NBR reporter Sally Lindsay looks at the changes
- Rabobank's newly appointed CEO Daryl Johnson answers seven key questions on this agriculture industry