Here's what Meridian Energy's (NZX:MEL) operations update for December reveals

  • January 27, 2021 02:47 PM NZDT
  • Kunal Sawhney
    Kunal Sawhney
    CEO Kunal Sawhney
    2782 Posts

    Kunal Sawhney is founder & CEO at Kalkine and is a richly experienced and accomplished financial professional with a wealth of knowledge in the Australian Equities Market. Kunal obtained a Master of Business Administration degree from University of T...

Here's what Meridian Energy's (NZX:MEL) operations update for December reveals

Meridian Energy Limited (NZX:MEL, ASX:MEZ) has stayed relatively resilient from the COVID-19 impact as the product created and sold by MEL is needed by everyone.

The Group witnessed a significant drop in demand for electricity during the Level 4 lock down, but demand bounced back to pre-COVID levels since that time.

Source: Shutterstock

On 27 January 2021, Meridian Energy provided its monthly operating report for December 2020.

Key highlights

For most of NZ, December was dry and mild with near average temperatures, and rainfall well below average, including western parts of the South Island.

Some of the highlights of Meridian’s operating report for December 2020 included the following:

  • Meridian’s monthly total inflows were 80% of historical average in the previous month.
  • National hydro storage reduced from 95% to 79% of historical average in the month to 18 January 2021.
  • Waitaki catchment water storage was at 73% of historical average at the end of December 2020, down 46% during the same time in 2019.
  • South Island storage stood at 72% of average, while North Island storage was at 117% of average on 18 January 2021.

 

Source: MEL NZX update, dated: 27 January 2021

Further, national electricity demand in December 2020 was 0.9% lower than the same month in 2019. However, Meridian’s Australian electricity customer numbers were 13.1% higher than the same time in 2019 at the end of Q2 FY21.

Meridian’s NZ and Australia Retail business

NZ retail sales volumes were 8.9% higher in December 2020 than December 2019. Sales rose in most segments in the month with residential (+8.8%), SME (+22.0%), large business (+8.3%), and corporate (+15.7%) compared to December 2019. New Zealand customer connection numbers rose 0.4% during December 2020 and 2.6% since June 2020.

ALSO READ: NZX 50 Energy stocks that began 2021 on a positive note

Powershop in Australia achieved outstanding growth as customers continued to choose cleaner energy options. Powershop Australia electricity and gas customer connection numbers rose 0.4% and 1.1%, respectively, during December 2020.

Tiwai Point Aluminium Smelter to exit in 2024

On 14 January 2021, MEL revealed that Rio Tinto had agreed to the new contract conditions presented by Meridian. This implied continuation of operations of New Zealand Aluminium Smelter (NZAS)  Tiwai Point Aluminium Smelter till December 2024.

In October 2019, Rio Tinto had announced to undertake a strategic evaluation of NZAS at Tiwai Point in Southland. Rio terminated its contract with Meridian on 9 July 2020 and intended to shut down the smelter by 31 August 2020.

On 27 January, at the time of writing, MEL was trading at NZ$7.74, down 2.03%.

 


Disclaimer
The website https://kalkinemedia.com/nz is a service of Kalkine Media New Zealand Limited (Kalkine Media), Company Number: 8107196. The principal purpose of the content on this website is to provide factual information only and does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) or engage in any investment activity under discussion. We are neither licensed nor qualified to provide investment advice through this platform. In providing you with the content on this website, we have not considered your objectives, financial situation or needs. You should make your own enquiries and obtain your own independent advice prior to making any financial decisions.
Some of the images that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed on this website unless stated otherwise. The images that may be used on this website are taken from various sources on the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image. The information provided on the website is in good faith, however Kalkine Media does not make any representation or warranty regarding the content, accuracy, or use of the content on the website.

 

   
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK