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Highlights
- NZ has established a partnership with California to address issues related to the climate crisis
- Meridian Energy extends contract with New Zealand Aluminium Smelters
- Mercury NZ completes the bookbuild process, allocates capital bonds
According to the latest reports, New Zealand and California have formed a new international climate partnership to tackle the climate crisis.
A Memorandum of Cooperation (MOC) has been signed by both of them to reduce pollution, support clean energy, and accelerate the move from toxic fuel-emitting vehicles to zero-emission vehicles. Also, the MOC aims to promote nature-based solutions for a cleaner and greenerfuture. No country is immune from impacts of climatic changes; hence like-minded countries should come forward and work towards achieving the mutual goals, cites Jacinda Ardern, NZ PM.
With this background, let us cast a glance at the three NZX-listed energy stocks and know their performance.
Source: © Andreus | Megapixl.com
Meridian Energy Limited (NZX:MEL; ASX:MEZ)
First on the list is Meridian Energy Limited, generating all its energy from 100% renewable sources and having a market cap of more than NZ$12 billion.
Do Read: GNE, MEL: 2 green stocks to eye as NZ aims for 100% renewable electricity
Recently, MEL has affirmed the extension of its Potline 4 contract between itself and NZAS, i.e., New Zealand Aluminium Smelters Limited up to September 2022.
The Company in its half-year performance ended 31 December 2022 reported an NPAT of NZ$145 million and an EBITDAF of NZ$394 million, reflecting the on-par performance with previous year and also its continued strong momentum across its operating business.
Meridian paid an interim dividend of 5.85 cps, up 2.6% on pcp, to its shareholders in April and is committed to delivering sustainable returns both for its consumers, investors as well as other stakeholders.
Mercury NZ Limited (NZX:MCY; ASX:MCY)
Second on the list is Mercury NZ Limited, which is one of the leading NZ electricity generators and energy retailers and has NZ$7.78 billion as its market cap.
Must Read: MEL, MCY, GNE: Stocks in focus as NZ lays roadmap for carbon-free future
Last month, following a successful bookbuild process, capital bonds worth NZ$250 million were allocated by the Company, carrying an interest rate of 5.73% p.a.
In its HY22 results, MCY's EBITDAF stood at NZ$242 million, while its NPAT clocked NZ$427 million, majorly on account of the net gain on the sale of its 19.9% Tilt Renewables shareholding.
It had paid an interim dividend of 8.0 cps in April to its investors and shares full-year EBITDAF guidance of NZ$570 million.
Contact Energy Limited (NZX:CEN; ASX:CEN)
Topping off the list is Contact Energy Limited, which, apart from supplying electricity, natural gas and LPG, also offers broadband services to its customers. It has around NZ$6 billion as its market cap.
In its monthly operating report for April, CEN’s customer business recorded an increase in its mass-market electricity and gas sales when compared to pcp, while its mass-market netback was slightly down on pcp.
Related Read: Contact (NZX:CEN): What is its strategy to lead NZ’s decarbonisation?
In its FY22 results, the Company saw a 72% jump in its profit, amounting to NZ$134 million, and its EBITDAF grew by 31% to NZ$322 million, bolstered by strong hydro generation and increased sales to fuel-constrained competitors.
In March, Contact distributed an interim dividend of 14.0 cps and is committed to playing its part in the country’s decarbonisation efforts over the next decade.
Bottom Line
NZ energy companies agree with the Government’s call for climate change and are focused on a systematic transition to a sustainable and renewable energy future.
