CEN, GNE, MEL: 3 energy stocks in the limelight amid carbon auction

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  • NZ ETS held a carbon allowance auction for the March quarter on 16 March.
  • CEN announced the price at which shares will be allotted under its Dividend Reinvestment plan.
  • Genesis issued green bonds worth $125 million on 14 March.


NZ had set up the NZ Emission Trading Scheme (ETS) in 2008 to fulfil NZ’s climate changes targets and lower GHG emissions. ETS charges certain sectors by putting a price on emissions and these sectors are required to acquire/surrender New Zealand Units (NZUs), also known as carbon credits, to account for their GHG emissions.

The NZ government conducts a carbon auction every quarter and releases. On 16 March, NZ ETS held carbon allowance auction for the March quarter where all 4.825 million available units were sold at a clearing price of $70, up from the previous sale price of $68.

A total of 32 participants bid for 11.72 million New Zealand Units (NZUs), and 30 participants successfully obtained units.

On this note, let’s see how these 3 NZX energy stocks are performing.

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Contact Energy Limited (NZX:CENASX:CEN) 

CEN announced the price at which shares will be allotted under its Dividend Reinvestment plan for interim dividend 2022. The price was determined at $7.875.

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Contact recorded mass market electricity and gas sales of 262GWh in February 2022 compared to 246GWh in the same month in 2021. The Group’s contracted gas volume stood at 15.35PJ for the next 12 months, as at 1 March 2022.

Contact ended the day 2.38% in red to close at $7.78.

Genesis Energy Limited (NZX:GNEASX:GNE)

Genesis issued green bonds worth $125 million on 14 March. The firm plans to use funds from the issue to fund or refinance renewable energy assets, other projects, assets and/or activities that meet eligibility criteria set in the Company’s Sustainable Finance Framework. It also plans to repay existing debt from the funds received.

DO READ: GNE, MCY, MEL- 3 energy stocks to watch amid changing climate patterns

Genesis ended the day 1.91% in green to close at $2.77.

Meridian Energy Limited (NZX:MELASX:MEZ)

Meridian released its monthly operating report for February on 15 March. National hydro storage fell 117% to 102% of the historical average in the month to 10 March. MEL’s total inflows stood at 120% of the historical average for February 2022 with the water storage in its Waitaki catchment at 113% of the historical average.

ALSO READ: 3 NZX green stocks on investors’ radar- CEN, MEL, GNE

However, MEL’s retail sales volumes were 6.9% lower in the month on the same month in 2021.

Meridian ended the day 1.01% in red to close at $5.075.

Bottom Line

The next carbon auction for the June quarter is due on 15 June 2022. New Zealand aims to become carbon neutral by having net zero emissions by 2050.

(NOTE: Currency is reported in NZ Dollar unless stated otherwise)



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