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

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 3 NZX green stocks on investors’ radar- CEN, MEL, GNE
Image source: Zixp, Shutterstock.com

Highlights

  • NZ is not on track to fulfil its 2030 and 2050 climate commitments as per the OECD report.
  • Genesis designated its 2047 Capital Bond as a Green capital bond on 28 January 2022.
  • Trustpower reported that it would maintain its EBITDAF in the range of $210 million to $225 million for FY22. 

Climate change is currently the most pressing issue faced by every country globally. This year awaits many major developments on climate change and biodiversity.

NZ has pledged to slash its GHG emissions by 50% by 2030 and become carbon neutral by 2050.

As per the latest OECD Economic Survey report, NZ is not on track to fulfil these commitments. The OECD has asserted that the carbon price in the domestic market was too low and effective complementary measures were needed.

On this note, let’s see how these 3 NZX green stocks are faring.

Image source: © 2022 Kalkine Media®

Contact Energy Limited (NZX:CEN;ASX:CEN)

Electricity, natural gas, and LPG services provider Contact Energy released its December operating report on 25 January. Contact’s customer business made electricity and gas sales of 288GWh in December 2021, up from 286 GWh in December 2020.

RELATED READ: Contact Energy (NZX:CEN): What is it doing to address climate change?

CEN’s contracted gas volumes for the upcoming 12 months stood at 15.24PJ as at 1 December 2021. CEN will release its HY22 results for the 6 months ended 31 December 2021 on 14 February 2022.

CEN ended the day 0.74% in red to close at $8.04.

Genesis Energy Limited (NZX:GNEASX:GNE)

Genesis designated its 2047 Capital Bond as a Green capital bond on 28 January 2022. The Group also converted its revolving bank facilities worth $90 million with BNZ and facilities worth $60 million with MUFG Bank Ltd to sustainability linked loans.

DO READ: How are 4 NZX energy stocks doing amid NZ’s green energy initiatives?

Lowering emissions, increasing renewable energy production and a bright future of work programme are some of its target areas.

GNE ended the day 0.34% in red to close at $2.9.

Trustpower Limited (NZX:TPW

Leading NZ electricity generator and retailer, Trustpower, released its quarterly operational report last month for the period ended 31 December 2021. For FY22, the Group reported that it would maintain its EBITDAF guidance in the range of $210 million to $225 million and CAPEX to be in the range of $34 million to $44 million.

ALSO READ: Significance of 2022 in the battle against climate change

Despite the COVID-19 pandemic, the retail sector remained stable during the period, but mobile connections grew.

TPW ended the day flat to close at $7.05.

Bottom Line

The NZ government will release its first emissions reduction plan in May, which will set policies and strategies to keep NZ within its emissions budget for 2022-25.

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

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