MEL
25/02/2013 08:55
HALFYR
REL: 0855 HRS Meridian Energy Limited
HALFYR: MEL: Meridian Energy Interim Results to 31 December 2012
Meridian Energy's half-year result a solid recovery from previous record dry
year
For immediate release: 25 February 2013
Meridian's Group net profit after tax (NPAT) for the six months ended 31
December 2012 was $173.3 million, an increase of $164.1 million compared with
the same period last year. This increase reflects good operating performance
combined with significant, favourable, non-cash fair value movements in
derivative instruments.
This solid operating result was achieved despite a 33% increase in
transmission costs, dry year hedges hanging over from last year and multiple
high-voltage direct current (HVDC) outages associated with the Pole 3
upgrade.
There was a modest EBITDAF decline of 6% to $277.1 million compared with the
same period last year. Adjusting for the effects of non-cash fair value
movements and other one-off items, underlying NPAT was $88.3 million - an 11%
reduction on the same period last year.
Meridian's results have recovered strongly from the second half of the 2012
financial year, where record low inflows made for difficult operating
conditions. EBITDAF for the six months to 31 December 2012 is 52% higher than
the six months to 30 June 2012.
This improved profitability can be attributed to increased inflows and better
efficiencies in the company's core business, particularly in the retail
business.
Meridian's Chief Executive, Mark Binns, said, "Meridian returned to higher
profitability this half year and is on track to achieve significant full-year
EBITDAF growth.
"Operationally the business is in good shape and we're building resilience
against New Zealand's medium-term flat demand outlook."
The company's Australian investment strategy is progressing well.
Construction started on Mt Mercer wind farm in December and Macarthur wind
farm, a joint venture with AGL Energy, will begin to generate revenue this
month.
Meridian will pay a dividend of $99.8 million to its shareholder, reflecting
100% of adjusted NPAT.
ENDS
For more information contact:
Amy Lockyer
External Communications
Meridian Energy
021 722 393
[email protected]
meridian.co.nz
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 285,000 connections - homes, farms and businesses throughout
New Zealand.
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.
Meridian generates electricity from renewable sources - wind and water in New
Zealand; wind in Australia; and solar in the USA. The company supplies 30 per
cent of New Zealand's total electricity needs, including to the country's
largest consumer, the New Zealand Aluminum Smelter. Meridian owns and
operates seven hydro stations, six within the Waitaki Hydro Scheme, and four
wind farms throughout New Zealand.
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.
End CA:00233386 For:MEL Type:HALFYR Time:2013-02-25 08:55:01
