Meridian pays out on lower profits
Low hydro inflows hit power company's half year results.
Energy company Meridian [NZX:MEL] is rewarding shareholders with another special dividend despite poor hydro conditions sucking the juice from its profits.
Net profit for the six months to December was $109 million, down 13% on the same period a year earlier.
Meridian said the period had coincided with four months of below-average hydro inflows, reducing generation from its hydro stations in the Waitaki and Manapouri systems.
Hydro generation for the period was 5289GWh, down from 6296GWh a year earlier.
Although the conditions produced higher wholesale electricity prices, Meridian had to buy more energy from the market to supply its contracted customers.
Meridian’s chief executive, Neal Barclay, said despite the persistently low South Island hydro inflows, the company had achieved strong customer-led growth.
Net retail sales rose 7% to $328 million. Overall revenue rose 27% to $1.44 billion.
The company announced an interim dividend of 5.38c a share, up from 5.33c a year earlier, plus a special dividend of 2.44c a share, equivalent to $62.5 million.
The special dividend continues Meridian’s five-year capital management plan and brings the amount distributed in the three years to date to $375 million.
Meridian shares last traded at $2.845, valuing the company at $7.29 billion.
Tim Hunter
Wed, 21 Feb 2018
Wed, 21 Feb 2018
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Meridian pays out on lower profits
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