New Zealand’s 7 Renewable Energy Stocks Gaining Momentum

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Over the years, with the increased focus on climate change, the companies are slowly denouncing the use of fuel and carbon portfolios and giving prime importance to sustainability and are investing in green initiatives.

As a result, renewable energy stocks are gliding high for they give assurance of affordability and clean and green environment.

Source: Copyright © 2021 Kalkine Media Pty Ltd

Let us look at 7 NZX renewable energy stocks that are garnering investor’s attention.

Mercury NZ Limited

Engaged in electricity production with 100% renewable resources, Mercury NZ Limited (NZX:MCY) recently announced its steady half-yearly results ended 31 December 2020. The report reflected an upwards trend across all parameters, inspite of decreased hydro generation. This could be achieved through cost control measures and diligent management of generation as well as retail portfolios.

EBITDAF rose to $294 million in HY21, up 14% on HY20. The Company’s NPAT shows a tremendous rise amounting to $130 million, up 57% on pcp. There was a decline by $7 million on pcp in the operational expenditure resulting in $87 million in HY21. Further, underlying earnings after tax climbed to $115 million in the said period.

Mercury declared interim dividend of 6.8 cps, which will be paid on 1 April 2021.

FY2021 EBITDAF guidance

  • MCY declared its re-assessed EBITDAF guidance for FY2021 to $520 million from $535 million. This can be attributed to an estimate of 100 GWh decline in the hydro generation owing to dry weather spell in the Taupo catchment.
  • Ordinary dividend guidance stays at 17 cps in FY2021, up 7.6% on pcp.
  • Further, there has been a reassessment from $80 million to $70 million in stay-in-business capital expenditure for FY2021.

Outlook

The Company aims to declare EBITDAF benefit of $30 million in FY22 and continues to remain focused and improve its processes and capabilities.

On 5 March 2021, at the time of market close, MCY was down by 2.28% at $6.00.

Z Energy Limited

NZ’s fuel transporting company, Z Energy Limited (NZX:ZEL), has announced shift in its management roles w.e.f. 1 April 2021.

  • Julian Hughes, presently working as GM Strategy and Risk, has been appointed has GM Transition.
  • Nicolas (Nic) Williams will now be working as GM Strategy and Risk.
  • Nicola Law, currently working as Integrated Supply Chain Manager, will now take charge as GM Commercial.

ALSO READ: Will 3 NZX-listed oil and gas stocks – NZR, NZO, ZEL -- continue to spark interest?

On 5 March 2021, at the time of market close, ZEL was up by 0.74% at $2.72.

Meridian Energy Limited

Country’s leading electricity provider, Meridian Energy Limited (NZX:MEL), has recently announced a change in its credit rating by the world’s leading credit rating agency- Standard & Poor’s Global Ratings.

S&P has revised the Company’s credit rating outlook to BBB+/Stable, from BBB+/Negative. The decision was taken following Rio Tinto’s (world’s leading mining group) affirmation to continue its business operations at New Zealand’s Aluminium Smelter (NZAS) till 31 December 2024. This would reduce the burden on MEL’s revenues and energy margins.

Moreover, S&P upheld MEL’s BBB+ as long-term issuer rating and declared A2 as short-term issuer credit rating.

ALSO READ: 5 NZX Stocks Gaining Investor’s Attention - MEL, MFT, SPK, PEB, IFT

On 5 March 2021, at the time of market close, MEL was down by 6.43% at $5.31.

Genesis Energy Limited

Source: Copyright © 2021 Kalkine Media Pty Ltd

One of the NZ’s leading energy companies, Genesis Energy Limited (NZX:GNE) recently announced its half-year financials ended 31 December 2020, thereby delivering a strong and robust performance for 1H FY20.

EBITDAF witnessed a tremendous rise to $217 million, up $50 million on HY20. NPAT for the same period also climbed to $52.7 million. Similarly, underlying earnings increased considerably at $60 million, up $44 million on pcp.

Further, there has been a decline of 5.5% in the Company’s net debt resulting in $1182 million in the said period. GNE saw a significant increase in its cash flows to $159 million, up 69% on pcp.

Genesis has declared interim dividend of 8.60 cps, payment of which will be made on 1 April 2021.

FY21 Guidance

The Company has projected its EBITDAF guidance to $415 million - $425 million for the full year ended 30 June 2021. Also, capital expenditure guidance of up to $95 million remains stable for FY21.

On 5 March 2021, at the time of market close, GNE decreasing by 1.37% at $3.6.

Tilt Renewables Limited

The owner of several wind farms across NZ, Tilt Renewables Limited (NZX:TLT) had recently updates about its Waipipi Wind Farm.

Located near south-west of Waverly in South Taranaki, Waipipi Wind Farm (WWF) is the largest single asset of Tilt in New Zealand with the capacity of 133.3MW. It is expected to generate 455GWh of electricity per year, which would be sufficient for consumption by over 65k homes.  

On 5 March, the Company notified the market that it has concluded 133MW WWF since all major construction activities and complete commissioning of 31 turbines has been finalised.

Deion Campbell, Chief Executive Officer, Tilt Renewables expressed his gratitude to the construction partners like ElectroNet Services, Transpower and others for smooth and secure delivery of WWF and defeating all the difficult circumstances that appeared during time.

ALSO READ: Tilt Renewables (NZX:TLT) shares quarterly update, registers massive production

On 5 March 2021, at the time of market close, TLT was down by 1.90% at $6.19.

NZ Windfarms Limited

Another NZ wind farm owner and operator, NZ Windfarms Limited (NZX:NWF) recently announced its half-year results ended 31 December 2020.

The total revenue of the Company was reported at $6.9 million for H1 FY2021. EBITDAF stood strong amounting to $3.2 million in HY21 slightly declined from $5.0 million in HY20. NPAT for the six months period was reported at $0.32 million. NWF’s HY21 electricity generation stood at 64.9 GWh, down on pcp with 67.7GWh.

On 22 September 2020, the Company paid 0.70 cps for FY20 as the final unimputed divided.

FY2021 EBITDAF Guidance

NWF anticipates the EBITDAF guidance of about $5.7 million to $6.3 million for FY21. Further, the Company will pay an unimputed interim dividend of 0.15 cps on 9 April 2021 to all its shareholders.

John Southworth, Chairman, NZ Windfarms Limited opined that the Company is focused on sustained and continuous growth, thereby, improving its efficiency and cost margins.

On 5 March 2021, at the time of market close, NWF was up by 0.53% at $0.191.

Contact Energy Limited

New Zealand’s sustainable energy company, Contact Energy Limited (NZX:CEN), had recently disclosed its financials for the

On the financial front, EBITDAF rose by 11% to $246 million on pcp. The Company’s statutory profit increased by $19 million to stand at $78 million during the six months ended 31 December 2020.

Further, there was a jump from $120 million to $157 million in the operating free cash flows of CEN in 1H FY21.

Contact Energy declared 14 cps as interim dividend to be imputed up to 9 cps, which will be paid on 30 March 2021 to its shareholders.

ALSO READ: Top 6 NZX Stocks With Impressive Dividend Yield -AIR, SKC, SPK, KPG, CEN, MEL

On 5 March 2021, at the time of market close, CEN decreased by 4.14% at $6.71.

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