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Summary
- Energy stocks have been resilient in the COVID-19 situation last year.
- Let’s analyse their latest developments to decipher how good an investment it could be.
- Offering good business in the financial year, they are contenders for being top stocks.
The country boasts a robust energy stock portfolio which is usually considered good for long-term investments. This is because energy stocks are big companies, which usually have the potential to offer good income to the investors. Presenting services like generation of electricity, water, and natural gas, etc., these stocks are also known as utility stocks.
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Let us have a look at some Energy stocks listed in the NZX to further understand how the industry is currently faring in the country.
Meridian Energy Limited (NZX:MEL)
Listed in Australia as well as New Zealand, Meridian Energy Limited is known to be one of New Zealand’s largest organisations. With its annual results for the year ended 31 June 2021 set to be released on 25 August 2021, anticipation is running high. In a previous announcement, the national hydro storage had seen a 3% rise historically. There was sales increase witnessed in all sectors, small/medium business by 49.2%, 33% in corporate, 5.7% residentially, and 1.4% in agriculture besides others.
Contact Energy Limited (NZX:CEN)
This Company focusses on providing sustainable smart solutions to clients for electricity generation besides other verticals. In its May 2021 update, the Company recorded Mass Market gas and electricity sales worth 372GWh, whereas the netback for Mass Gas and Electricity was NZ$103.66/MWh. The unit generation cost for wholesale business was recorded to be NZ$58.74/MWh as compared to pcp. The FY21 results for the year ended 30 June 2021 are expected to be announced on 16 August 2021.
Trustpower Limited (NZX: TPW)
One of New Zealand’s leaders in telecom, internet, and energy services, Trustpower limited works with different businesses in the country. In its Earnings Guidance released in the month of May, the Company set the EBITDAF at NZ$200 million-225 million. The Group CAPEX range was set at NZ$43 million-NZ$59 million. More to be found on in the annual shareholders meeting which will occur on 22 September 2022.
Mercury NZ Limited (NZX:MCY)
This Company operates in electricity generation as well as retail and harnessing. The Company has recently announced acquisition of the retail business of Trustpower Limited. The deal is worth NZ$441million, which is to be paid in cash. The same shall be subjective to different requisites, including Commerce Commission clearance and Trustpower shareholder approval.
Tilt Renewables Limited (NZX: TLT)
This Company works towards the generation of renewable energy in Australia and New Zealand. In the annual report released by the Company on 28 June 2021, the EBITDAF was recorded AU$ 74.9million and the cash flow from operation was recorded at A$ 46.4million. The NPAT was AU$67 million and there has been continuous growth recorded in the firming and storage technology.
At the time of writing on 1 July 2021, Tilt Renewables Limited traded at NZ$8.040, up by 0.12%.
NZ Windfarms Limited (NZX:NWF)
This, as the name suggests, is the operator of a windfarm in Te Rere Hau, which has the potential to generate clean electricity, enough to power 16,000 homes. In a recent announcement, the Company said that it had reached a new VVFPA agreement, which should be worth 25% of its production between 1 October 2022 and 30 June 2023.
Also read: What is the purpose of dividends? Are they a good sign? A glance at 10 such NZX stocks
Genesis Energy Limited (NZX: GNE)
This Company operates in the sale of electricity, LPG, and natural gas, serving around 500,000 customers through various retail brands. Recently, it announced the use its Fixed price option set at NZ$35 per tonne. This being done, so the Company is able to reach its carbon obligations for the year 2020 under the New Zealand ETS Scheme. The EBITDAF Guidance for FY21 stands at NZ$415 million-NZ$425 million.
Infratil Limited (NZX: IFT)
This is an investment holding company, which owns data, airport, and social infrastructure businesses to name a few. In a recent announcement, the Company declared that Morrison & Co had completed the share acquisition for Infratil worth a sum of NZ$20 million for 2,646,754 shares. Trustpower Limited, in which Infratil has 51% shares, has recently announced the sale of some segments of its business.
On 1 July 2021, Infratil Limited traded at NZ$7.730, up by 0.39%, at the time of writing.
Don’t miss: Why are 5 NZX50-listed shares trending during the market session?
Vector Limited (NZX: VCT)
This organisation works to deliver communication and energy services to over a million homes in the country. According to the operational performance declared by the Company in April 2021 for the 9 months up to 31 March 2021, electricity network connections witnessed a 1.7% rise and stood at 588,018, while the network gas connections were recorded to be up 2.1% at 116,014. The advanced meter fleet has witnessed a rise of 8.1%.
