Meridian Energy makes $429 million profit
Wednesday, 28 August 2024
Meridian Energy has reported a net profit after tax of $429 million.
That was an increase from the previous year of $95 million.
Meridian is New Zealand’s largest energy retailer.
Meridian Energy has reported an annual increase in net profit after tax, from $95 million to $429 million.
The gentailer today released its annual financial results which showed operating cash flows of $667 million for the year ending 30 June 2024, up from $509 million the previous year.
The growth in net profit after tax was influenced significantly by net gains on hedge instruments of $249 million in the 2024 financial year, its media release said.
In the prior year the company recorded net losses on hedge instruments of $351 million.
It’s earnings before interest, tax, depreciation, amortisation, unrealised changes in fair value of hedges, impairments and gains or losses on sale of assets was up 16% to $905 million and underlying net profit rose 14% to $359 million.
Chief executive Neal Barclay said it was a strong and improved operating result that allowed the company to invest $349 million in new and existing generation assets during the year.
The company noted that, while the operating result for the last financial year was strong, the operating environment shifted dramatically during May as a drought emerged.
Inflows into the company’s hydro catchments from May 2024 through to mid-August 2024, had been the lowest on record and, as a result, the 2025 financial year currently looks to be far more challenging.
“Record low inflows have combined with a shortage of gas and unseasonally low wind, causing wholesale prices to lift materially,” Barclay said.
“As a result, Meridian called on hedge arrangements to ensure our hydro lakes were managed within consent conditions to maintain security of supply.”
When it came to retail, Meridian grew customer connections by 2% and customer sales volume (GWh) by 4% during the year.
It remained the country’s largest supplier of retail electricity, with sales of more than 9,500 GWh.
“We are testing new ways to support customers to further electrify their energy use and to pass value onto customers where they can manage their demand flexibility and avoid the electricity system’s peak demand periods,” Barclay said.
The release of annual results comes as the country is heading towards an electricity supply crisis after months of dry weather and falling gas reserves have cause soaring wholesale electricity prices.