Meridian Energy underlying half year net profit up
State-owned electricity company Meridian Energy lifted half year underlying net profit 4 percent to $123.4 million, and is to pay the Government an interim dividend of $94.2 million.
State-owned electricity company Meridian Energy lifted half year underlying net profit 4 percent to $123.4 million, and is to pay the Government an interim dividend of $94.2 million.
Revenue of $1.09 billion in the six months to the end of December was 18 percent higher than a year earlier, while earnings before interest, taxation, depreciation, amortisation and financial instruments (ebitdaf) rose 19 percent to $353.3m.
The result included $28.1m, net of legal expenses, received following a settlement reached between Meridian and RTA Power concerning liability for electricity during a pot line outage at the Tiwai smelter in 2008, Meridian said today.
The ebitdaf improvement was driven by the RTA Power settlement, increased wholesale electricity spot prices benefiting un-contracted generation, contracted electricity sales volume growth, along with earnings from international operations.
While spot prices were higher than a year earlier, they were still relatively low, with the company's hydro storage lakes remaining above average during the six-month period, while demand was soft, Meridian said.
Despite strong retail competition, contracted electricity sales volumes within its retail segment increased from last year, reflecting an increased contribution from the Powershop brand and changes in customer mix.
Despite that, profitability of that segment was negatively affected by higher average electricity purchase prices during the six-month period.
Bottomline net profit fell 41 percent to $84.7m, with the figure reflecting as a result of increased depreciation following the revaluation of generation assets and non-cash accounting adjustments for fair value movements on financial instruments.
The interim dividend of $94.2m, combined with the 2010 final dividend, would take total dividends paid this financial year to $162.6m.
NZPA
Wed, 23 Feb 2011
Wed, 23 Feb 2011
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Meridian Energy underlying half year net profit up
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