Meridian lifts annual earnings 5.6%, beating forecast; pays special dividend
The company is embarking on a five-year capital management programme to return some $625 million to shareholders.
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Meridian Energy [NZX:MEL], the country's biggest electricity generator, lifted annual earnings 5.6%, beating its prospectus forecast, and plans to pay a second special dividend after asset sales helped boost the company's cashflow.
The company is embarking on a five-year capital management programme in which it intends, barring unforeseen investment opportunities or changes to the market, to return some $625 million to shareholders, chief executive Mark Binns said.
Earnings before interest, tax, depreciation, amortisation and fair value adjustments, rose to $618 million in the 12 months ended June 30, from $585 million a year earlier, and was 5% above the company's prospectus forecast, the Wellington-based company said in a statement. Revenue rose 16% to $2.9 billion, and net profit after tax gained 7.4% to $247 million, assisted by a $62 million tax benefit caused by not being required to pay capital gains tax previously levied in Australia and a revised treatment for depreciation on its powerhouse buildings. Forsyth Barr analysts were expecting profit of $211.5 million on revenue of $2.54 billion.
"In the last year, we have seen progress on a number of issues affecting the New Zealand electricity market," Mr Binns said. "Modest demand growth is welcome, the Tiwai Point smelter's immediate future is clearer and the Electricity Authority has provided a more sustainable option on transmission pricing."
The board declared a final dividend of 8.08c per share and a special dividend of 3.95c, payable on October 15, with a September 30 record date. That takes the total payout for the year to 18.23c per share, with a special dividend of 2.44cps having already been paid this year.
The shares last traded at $2.19 and have gained 25% this year.
(BusinessDesk)
Paul McBeth
Wed, 19 Aug 2015
Wed, 19 Aug 2015
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Meridian lifts annual earnings 5.6%, beating forecast; pays special dividend
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