Which are the 5 best power Companies in NZ?


  • Contact Energy offers operating report, Mercury NZ releases sturdy performance in the annual report.
  • Trustpower announces management changes and new-age business name.
  • Genesis Energy announces an 8.8cps dividend for its shareholders.

New Zealand is known to harness renewable energy well, and the energy industry is one of the leading money pullers for the country. Have a look at some of the top power Companies in the country to see how they have performed of late before you decide to take the plunge into investing in the sector.

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Contact Energy Limited (NZX:CEN)

The aim of this Company is to offer sustainable solutions by generating most of its energy through renewable resources. In the July issue of the monthly operating report offered by the Company, there were 485 GWh mass gas and electricity sales recorded while the netback earned on mass gas and electricity was NZ$102.03/MWh. The net revenue for electricity and steam were recorded at NZ$132.8/MWh.

On 26 August 2021, Contact Energy Limited traded at NZ$8.100, up by 0.50%, at the time of writing.

Mercury NZ Limited (NZX:MCY)

Another leading energy stock in the country, this Company offers brands like GLOBUG and Bosco, as its retail business of renewable energy. In the recently released financial results of the Company, there were sturdy financial performances recorded along with the announcement of two major acquisitions. While the EBITDAF recorded was NZ$463 million for the period, the NPAT was recorded at NZ$141 million, which was a NZ$68 million drop from pcp.

On 26 August 2021, Mercury NZ Limited traded at NZ$6.770, down by 2.17%, at the time of writing.

Don’t miss: Is Trustpower (NZX:TPW) NZ owned? What are the recent deals signed by it?

Trustpower Limited (NZX:TPW)

In a recent announcement, after the completion of its retail business conditional sale, the new-age business of the Company is set to be named Manawa Energy Limited. Besides this, there were several recent management changes announced. While Susan Peterson, a director of the Company, isn’t going to seek re-election, David Prentice, who is the CEO of the Company, shall resign from his Director position. Sheridan Broadbent, Peter Coman, David Gibson, and Joanna Breare shall be available in the Director election.

On 26 August 2021, Trustpower Limited traded at NZ$7.950, down by 0.50% at the time of writing.

Also read: Which are the 5 companies paying more than 5% dividend yield on NZX?

Genesis Energy Limited (NZX:GNE)

This Company deals in the sale of LPG and electricity besides reticulated natural gas with a wide range of operations to offer. In the full-year results recently declared by the Company for the period till 30 June 2021, the EBITDAF was recorded at NZ$358 million, while the Net profit earned was NZ$33 million, with NZ$75 million in underlying earnings. The Company declared a final dividend of 8.8cps. There was a NZ$27-million investment made by the Company for the utilisation of the Fixed Price option to meet carbon obligations.

On 26 August 2021, Genesis Energy Limited traded at NZ$3.375, 0.59% up, at the time of writing.

Related articles: 10 NZX dividend stocks to explore during this August reporting season

Meridian Energy Limited (NZX:MEL)

This dual-listed energy-based company is focused on achieving its sustainability goals. It is further to be noted that 51% shares of the Company are owned by the New Zealand Government. In the full-year financial results declared by the Company, the underlying NPAT offered was NZ$232 million, while the EBITDAF was recorded at NZ$729 million, both substantially down from the previous year. Neal Barclay, the Chief Executive, admitted that the second-half earnings of the Company were hampered by drought conditions.

On 26 August 2021, Meridian Energy Limited traded at NZ$5.020, down by 1.18%, at the time of writing.

Bottom Line

Different energy companies have recently given out their annual results, indicating resilient performances despite the challenges being faced by them. Offering steady dividends to the shareholders, they have inculcated trust for being feasible investments.