The company reported an increased profit, an increased dividend and dangled the prospects of returning $625 million of capital to shareholders over the next five years.
Chief executive Mark Binns said the board remained flexible as to how the capital return would be achieved but the anticipated form of return would be either an annual on-market share buyback programme, special dividends or a combination of both.
Meridian was one of the state-owned energy companies partially sold down by the Government.
Forsyth Barr broker Andrew Rooney said the return of capital depended on the Tiwai Point aluminium smelter remaining open, a key date being July 1 this year. Meridian would inform investors of the amount it would return in 2016 in the 2015 full-year result.
''While this is positive, Meridian will still end up with a very conservative balance sheet at the end of five years with this level of capital return.''
The company's energy margin rose 7.5% in the period to $480.2 million from $446.6 million.
The operating profit rose nearly 21% to $324.3 million and the reported profit rose only slightly to $117.1 million from $116.9 million.
The reconciled normalised profit, which included gains and sales on assets and tax adjustments, was up 38% to $114.8 million compared with $83 million.
Meridian also announced a fully imputed dividend for the first time of 5.8c per share, 1.4cps of which was a special dividend. The company also lifted its dividend payout ratio range from 70%-80% to 75%-90%.
The lifting of the top end of the range was notable, Mr Rooney said.
''There are several positives from this result. First, the result itself was strong, stronger than expected. We will be looking at full-year earnings upgrades. The 2015 result will be well ahead of the prospectus forecast.''
Secondly, the dividend was fully imputed for the first time and thirdly, Meridian had maintained consistency regarding capital returns and had kept investors well informed, he said.
Craigs Investment Partners broker Chris Timms said the result was all about the dividend and the company was well-positioned to beat its prospectus forecast.
There was no clear guidance, except to say current hydro conditions were not a concern. Inflows into catchments had been consistent with Lake Pukaki storage 93% of average on February 17.
''This position is not adversely affecting generation outlook.''
Mr Binns said it was gratifying earnings were up against the previous period on all measures.
