Meridian pays out another $200m
Meridian Energy is to pay another special dividend, after reporting record electricity generation and growth in Australia.
The Wellington-headquartered electricity company, 51 per cent owned by the Government, announced a special dividend of 2.44 cents yesterday as it reported its financial results for the second half of 2016.
The special payment is on top of a 5.44c interim dividend, meaning New Zealand’s largest electricity generator is returning just under $200 million for the period.
Underlying net profits after tax were $130m for the six months, the highest ever and 7 per cent higher than the same period in 2015.
Chief executive Mark Binns said Meridian had boosted its margins on electricity sales, with record electricity generation and lower insurance purchases offsetting lower sales due to a mild weather.
Figures supplied by the company show that electricity demand was slightly lower in most of New Zealand compared with the second half of 2015, but sharply lower in large parts of the South Island.
Demand on the West Coast was 22 per cent down on the second half of 2015, 10 per cent lower in north Canterbury and 18 per cent lower in South Canterbury and North Otago.
Almost all the lower demand was in the final three months of the year, driven by lower irrigation as well as the closure of Westport’s Holcim Cement plant and Reefton’s Oceanagold mine.
Shares in Meridian dropped half a cent to $2.66 yesterday, but are up almost 25 per cent on a year ago.