Meridian Energy’s FY 2013/14 net profit falls on rising competition

Aug 18, 2014 - New Zealand state-run utility Meridian Energy Ltd (NZE:MELCA) saw its net profit in the fiscal year through June 30 decline by 22% in annual terms to NZD 229.8 million (USD 195m/EUR 146m) as competition became more intense.

The company, which operates wind and hydropower facilities, said on Monday that adjusted for hedging and one-off effects its net profit rose by 19.6% to NZD 194.6 million. Earnings before interest, tax, depreciation and amortisation and fair value adjustments (EBITDAF) increased slightly to NZD 585.3 million from NZD 584.8 million thanks to higher than expected power output and better pricing in the corporate and industrial market.

Full-year revenues improved by 1% on the year to NZD 923.4 million, with sales in New Zealand rising by 3.05% to NZD 891.5 million.

Meridian’s New Zealand power plants generated 8.9% more electricity in fiscal 2013/14 as compared to the year-ago period, the utility said.

The company generated "strong cash flows" during the year and will distribute its first dividend since its listing last year - a total ordinary dividend of NZD 0.11 per share and a special dividend of NZD 0.02 per share from the sale of land and other assets.

(NZD 1.0 = USD 0.849/EUR 0.634)

Choose your newsletter by Renewables Now. Join for free!