Meridian Energy result boosted by gains from asset sale
Key numbers
AUCKLAND: Meridian Energy has posted a steady fullyear underlying profit, although its headline number was swelled by the gains from an asset sale.
Meridian chief executive Neal Barclay said it had been a challenging, but successful year.
‘‘We’ve navigated another significant drought, grown our customer base, built out our development pipeline and maintained momentum on the construction of our Hawke’s Bay wind farm — Harapaki.’’
The company’s bottom line was lifted by a $214 million gain on the sale of its Australian business and a $281 million rise in the value of hedging contracts, used to insure against market volatility.
Mr Barclay said Meridian consumer and corporate power sales continued to increase and the company was continuing to focus on customers, particularly the vulnerable.
It was also looking at developments to decarbonise energy and lift renewable energy, with projects totalling 2.4 gigawatts, including a battery storage system and solar farm in Northland, and a wind farm in Hawke’s Bay, he said.
‘‘The team working at Harapaki have navigated a number of challenges successfully. The impact of these challenges has meant that we’ve had to spend more money on this project than anticipated to maintain the construction timeline,’’ he said.
It was also working to help industrial users switch from needing process heat, such as dairy factories, to use renewable sources.
Meridian is working with Contact
Meridian fullyear results to end of June 2022 2021 $664m $428m $233m $231m $3.7b $3.96b 17.4cps 16.9cps
Net profit Underlying profit Revenue
Fullyear dividend
Energy on possibly using South Island power to produce green hydrogen, with Australian firms Woodside Energy and Fortescue Future Industries shortlisted to develop detailed proposals.
There was no discussion of what, if any, progress was being made in talks with New Zealand Aluminium Smelters Ltd on a possible new supply contract for the Tiwai Point smelter after the current one expires at the end of 2024.
Meridian’s share prices closed yesterday down 15c at $5.10. They have risen about 2% in the past 12 months. — RNZ