- Meridian Energy announces its full-year results, indicates strong growth in customer sales.
- COVID-19 and the drought brought about certain challenges for the Company.
- Future plans for the growth and development of the new windfarm are being worked upon.
Dual-listed Energy Company, Meridian Energy Limited (NZX:MEL)(ASX:MEZ), is known to be one of the largest businesses in the country. The company primarily produces energy through water, sun, wind and other renewable resources with the New Zealand government being the majority shareholder in the Company.
Despite the substantial downward trend as compared to last year due to COVID-19, strong full-year results were recorded by the company for the period till 30 June 2021, the underlying NPAT was declared NZ$232 million, 27% lower than pcp, while the EBITDAF for the duration was recorded 15% below pcp, standing at NZ$729 million.
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Owing to NZ$248 million in terms of positive non-cash movements for hedge instrument values, net profit after tax was recorded at NZ$428 million for the year till 30 June 2021. It was further noted that the results in the past two years were stronger as a result of growth in retail sales volumes. Despite several COVID-19- and drought-related challenges, the company managed to take the retail sales volumes 14% higher than previous year. The hydro generation in the country was recorded 12% lower than pcp as a result of the drought.
Neil Barclay, the Chief Executive of the Company, acknowledged various challenges faced in FY21. Throwing light on how the cash earnings were affected in the second half of the year due to increasing hedge costs and the reduction in generation, the future value of the business remains strong. The commitment towards building the Harapaki wind farm also remains strong along with growth in customer sales.
The company declared a final dividend of 11.20 cps, which takes the total FY21 dividend to 16 0.90 cps. the company further announced a dividend reinvestment plan, which shall be applicable for the final dividend of the year. There shall be a further discount of 2.0% applied to the dividend in the DRP, as indicated by the board.
There was a separate announcement made about the dividend reinvestment plan, which answered all the queries of the shareholders about the eligibility procedure and the results of the same. If there is a minimum number of shares that people can invest in besides other concerns were answered.
After having delivered stable results in the year 2021, the company is now moving towards newer goals related to productivity and sustainability in the future.