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

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

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 GNE, MCY, MEL- 3 energy stocks to watch amid changing climate patterns
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Highlights

  • Global warming to intensify if both domestic and global efforts are not made for limiting GHG emissions.
  • Genesis Energy announces the closure of its Green Bonds offer.
  • Meridian Energy to distribute 5.85 cps as an interim dividend on 8 April.

 

As per a recent report on climate change, the changing climate is posing challenges for food and fiber-producing regions of both New Zealand and Australia.

As economies of both the countries are based on the primary sector, both NZ and AU are witnessing more frequent and intense droughts, storms, chilling winters, deeper floods and stronger winds, thereby making farming more taxing also because of unstable yields.

These changes will aggravate in the future if the planet gets warmer. Hence, it is the need of the hour to call for both domestic and international efforts to reduce emissions of greenhouse gases.

With this overview, let us look at the three NZX-listed energy stocks which are helping the country in its efforts towards decarbonisation.

 NZ energy stocks- GNE, MCY, MEL

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Genesis Energy Limited (NZX:GNE; ASX:GNE)

Genesis Energy Limited today announced the closure of its offer of 6-year fixed-rate unsecured Green Bonds, following a successful bookbuild process.

Green Bonds worth NZ$125,000,000 have been allocated, and the interest rate is kept at 4.17% p.a., with the maturity date being 14 March 2028.

On 4 March, at the closing bell, GNE climbed by 1.05% at NZ$2.900.

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

Mercury NZ Limited (NZX:MCY; ASX:MCY)

Mercury NZ Limited in its recently released HY22 results, recorded a growth in its NPAT, amounting to NZ$427 million, underpinned by a net gain on the sale of its 19.9% in Tilt Renewables shareholding.

Related Read: MCY, CEN, VCT, NZO- 4 NZX utilities amid growing emissions concerns

On 1 April, it will pay an interim dividend of 8.0 cps.

Further, MCY’s transformation from being a no-wind generation to the largest wind generator across New Zealand has been a significant achievement during the said reporting period.

It has forecasted its FY22 EBITDAF guidance to be $570 million and dividend guidance of 20.0cps for the full year.

On 4 March, at the closing bell, MCY traded flat at NZ$5.840

Meridian Energy Limited (NZX:MEL; ASX:MEZ)

Meridian Energy Limited in its half-year performance ended 31 December 2021 reported a lowered NPAT of NZ$145 million, mainly on account of negative changes in the value of hedge instruments.

Must Read: Why did Meridian’s (NZX:MEL) net profit see a fall of 36%?

Its continued growth in retail sales and a strong operating performance was offset by a reduction in the revenue received from Aluminium Smelter.

Nonetheless, Meridian has announced paying a 5.85 cps as an interim dividend on 8 April.

On 4 March, at the closing bell, MEL gained 0.19% at NZ$5.230.

Bottom Line

NZ energy companies are focused on ensuring increased energy generation through greener and cleaner sources of energy, thus aiming for a sustainable future.

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