International growth lifts Meridian

Chris Timms.
Chris Timms.
Meridian Energy is benefiting from a growth in international revenue, driven by growth in Powershop, more wind and better wholesale and large-scale generation pricing.

Powershop is an online electricity retailer, founded in New Zealand and also available in Australia and the United Kingdom.

Craigs Investment Partners broker Chris Timms said operating earnings for Meridian were up $20million on the previous corresponding period, of which $14million was due to international.

The company yesterday reported operating earnings of $352million, up 6% on the $332 million in the pcp.

The adjusted reported profit was up nearly 7% to $132million in the period and revenue was down slightly to $1.13billion from $1.21billion.

Mr Timms said the domestic performance was driven by another ''great hydro half'' but it could have been stronger if the company had a better hedged position.

A fall in irrigation had the biggest negative impact on earnings.

The New Zealand energy margin came in at $438million, up $9million on the pcp, directly in line with his forecast.

The international energy margin increased by $15million to $50million, $10million ahead of forecast.

International earnings jumped from $17million in the pcp to $32million, as Powershop began to deliver in Australia, wind generation grew by 19% and wholesale and large-scale generation (LGC) pricing firmed, he said.

Meridian chief executive Mark Binns said it was pleasing Meridian lifted its New Zealand earnings, despite tough conditions, and to see the performance lift in Australia.

''While mild winter and wet spring conditions contributed to lower contracted sales, record generation, lower purchase costs and less dry period insurance meant 2% growth in the New Zealand energy margin.''

Meridian would pay an ordinary dividend of 5.33c per share, 4.5% higher than last year, and imputed to 88%. The company would also pay a special dividend of 2.44c per share, equating to $62.5million, as part of its five-year capital management plan.

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