MEL
13/08/2012 08:37
FLLYR
REL: 0837 HRS Meridian Energy Limited
FLLYR: MEL: Meridian Energy Annual Result 2012
Meridian Energy announces lower profit at end of unprecedented hydrology year
For immediate release: 13 August 2012
Meridian Energy's Group net profit after tax (NPAT) was $74.6 million for the
year ended 30 June 2012, $228.5 million (75%) lower than last year.
Last year's result was boosted by the sale of the Tekapo hydro stations to
Genesis Energy on 1 June 2011 (net gain of $157.4m), 11 months of generation
revenue from the Tekapo stations ($32.4 net of costs) and proceeds received
following the settlement with New Zealand Aluminium Smelters Limited ($28.1
net of legal costs). Excluding these impacts, NPAT was $28.8 million (28%)
below last year.
EBITDAF of $476.6 million reduced by $183.3 million compared with last year.
Adjusting for Tekapo generation revenue and the New Zealand Aluminium
Smelters settlement last year, EBITDAF fell by $122.8m. Comparing this year's
result to 2008, the last significant but less severe dry year, EBITDAF was
$102.7 million higher despite the loss of Tekapo generation.
Meridian's Chief Executive, Mark Binns, said, "It's been an unprecedented
year in terms of hydrology conditions - the lowest inflows in 79 years. The
integrated nature of our wholesale and retail business has been key to
improving performance compared to 2008. We've managed the situation well
through conservative generation and by actively hedging our position against
contract load."
The record low inflows and impairments realised during the year have driven
the decline in NPAT. Impairments reflect the decisions taken to rationalise
the company's generation development portfolio and non-core investments.
Meridian's underlying NPAT (where the effects of non-cash fair value
movements, impairments and other one-off items are removed) has decreased by
52% compared to last year. Last year's underlying NPAT includes 11 months of
generation revenue from the Tekapo stations and proceeds from the settlement
with New Zealand Aluminium Smelters Limited. If these items were excluded,
the current year's decrease would be 40%.
The Retail segment achieved pleasing growth in its underlying profitability
based on a fixed input purchase price of $85/MWh, due to a better balanced
portfolio. Meridian's international and subsidiary segments also improved
their performances compared with last year.
Since Mark Binns started as Chief Executive in January, the company has
rationalised its non-core investments. This has included the announcements of
the decisions to construct Mill Creek and exit both Project Hayes and
Mokihinui. Meridian also sold Right House, its shareholding in Whisper Tech's
European joint venture, and is marketing its USA business.
Meridian's overseas renewable development projects are progressing well. Mr
Binns said, "In Victoria, Australia, the joint venture Macarthur wind farm
project is on-track to start generating first power in September 2012, and we
delivered a solar farm for the Tongan Government under the New Zealand
Government aid programme."
Meridian is trialling its award-winning Powershop offering in the Australian
retail market, and is evaluating the potential to develop the Mt Mercer wind
farm, also in Victoria.
Meridian started construction on the Mill Creek wind farm, near Wellington,
in July.
During the year, Meridian paid $140.7 million of dividends to its
shareholder.
ENDS
For more information contact:
Amy Lockyer
External Communications
Meridian Energy
021 722 393
[email protected]
Materials will be available at meridianenergy.co.nz/annualresults2012
About Meridian Energy
Meridian Energy is an integrated renewable energy company; the largest
generator in New Zealand, with a strong pipeline of development options in
Australasia; and an electricity retailer throughout New Zealand.
Meridian and its online subsidiary Powershop retail electricity to
approximately 290,000 connections - homes, farms and businesses throughout
New Zealand. Meridian received the highest customer satisfaction ratings of
all the major national retailers, and Powershop was rated first overall, as
voted by customers in two independent surveys1 carried out in 2011.
The Meridian Energy Group includes a parent company Meridian Energy,
subsidiary businesses in Australia and the USA and other innovative New
Zealand investments that complement our core activities as an electricity
generator and retailer. In total the Group employs approximately 775 people
and has offices in Wellington, Christchurch and Twizel, and, internationally,
in Melbourne, Australia, and San Francisco, California.
Meridian generates electricity from renewable sources - wind and water in New
Zealand; wind in Australia; and solar in the USA. The company supplies thirty
per cent of New Zealand's total electricity needs, including to the country's
largest consumer, the New Zealand Aluminum Smelter, near Bluff. Meridian
owns and operates seven hydro stations, six within the Waitaki Hydro Scheme,
and four wind farms throughout New Zealand.
In Australia, Meridian owns and operates Mt Millar wind farm and is
partnering with AGL Energy to build the Macarthur wind farm, which, at 420
megawatts, will be the largest wind farm in the Southern Hemisphere. The
company also built the world's southernmost wind farm at Ross Island in
Antarctica, in partnership with Antarctica New Zealand. Meridian's solar
farm, CalRENEW-1, was the first grid-connected solar farm to be built in
California, and the company has used that expertise to build the first solar
farm in Tonga.
Meridian's pipeline of renewable development projects includes options at
different stages of investigation and consent to meet its share of growth
demand.
Meridian's commitment to renewable energy, environmental stewardship and
support for the communities living alongside its assets makes it
authentically sustainable. Meridian continually looks for ways to provide
positive energy solutions to customers to help them reduce their energy use.
1. Independent surveys
o Consumer. Energy provider survey results, 28 July 2011. Available at
http://www.consumer.org.nz/reports/energy-providers/survey-results
o Fair Go/Colmar Brunton Best in service poll - power companies, 19 October
2011.
End CA:00225860 For:MEL Type:FLLYR Time:2012-08-13 08:37:07
