How are 5 NZX energy stocks aiding clean projects in 2021?


  • The NZ government has committed $1.3 billion to support countries most exposed to climate change.
  • Trustpower appointed Catherine Thompson as General Manager, Regulatory and Risk, on Tuesday.
  • Z Energy declared that the last day of trading in ZEL040 bonds will be 20 October 2021.

The New Zealand government has pledged $1.3 billion over the next 4 years to help vulnerable and poor countries tackle climate change. Half of the money will go to the Pacific nations that are on the front line of climate change. The move comes as the country plans to increase its share in global climate funding. The country had committed $300 million previously for this effort.

The investment will allow NZ to support clean energy projects in developing countries and many other initiatives.

Amid this backdrop, let’s skim through how these 5 NZX energy stocks are performing.

5 NZX Energy stocks and their returns

Image source: © 2021 Kalkine Media, Data source- Refinitiv

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

Leading electricity producer of NZ, Meridian issued share rights on 6 October to choose few Meridian employees related to its Executive LTI scheme. Each share right will authorise the holder to 1 share in the company and additional shares equal to the value of gross cash dividends per share.

RELATED READ: How would NZX energy stocks help in driving down emissions?

The issue of share rights is likely to happen on 21 October 2021.

MEL ended the day 0.83% in green to close at $4.87.

Contact Energy Limited (NZX:CENASX:CEN)

Largest privately-owned energy firm, Contact Energy, released its operating report for September 2021. The Group stated that its customer business recorded mass market electricity and gas sales of 389 GWh in September 2021 compared to 398 GWh in September 2020.

RELATED READ: Contact (NZX:CEN): How did it perform in September month?

The Group’s wholesale business reported an electricity and steam net revenue of 95.10/MWh, up from $83.78/MWh on pcp.

CEN ended the day 0.62% in red to close at $8.02.

Genesis Energy Limited (NZX:GNEASX:GNE)

Electricity generation company, Genesis Energy, announced on 14 October that the inlet compression project had enabled the Kupe plant to return to its full production capacity of producing 77 TJs per day. This is equivalent to supplying nearly 15% of NZ’s natural gas demand.

Craig Brown, Genesis’ Group Manager Kupe Joint Venture stated that natural gas would continue to be an essential fuel as NZ shifts to a low-carbon future.

GNE ended the day 0.15% in green to close at $3.33.

Trustpower Limited (NZX:TPW)

Trustpower announced Tuesday that Catherine Thompson would join as General Manager in the Regulatory and Risk department in early 2022, parallel to the expected completion of the sale of the Group’s business to Mercury. Ms Catherine will report to CEO David Prentice.

INTERESTING READ: What was New Zealand’s ranking in KPMG’s latest survey?

The role is significant to make sure that TPW fulfils its growth ambitions and stakeholder focus on which its exit from the mass market retail was based.

TPW ended the day 1.62% in red to close at $7.28.

Z Energy Limited (NZX:ZEL)

Kiwi transport fuel company, Z Energy, announced on 14 October that the last day of trading in ZEL040 would be 20 October 2021 before bonds are suspended at the close of the business.

The final quotation date for the business will be 1 November 2021. ZEL also notified that the General Manager of Supply, David Binnie, will leave the firm during Q4 FY22.

ZEL ended the day 0.28% in green to close at $3.64.

Bottom Line

The question remains if the boost in climate spending is a step in the right direction with NZ already facing many years of budget deficit.

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