Meridian Energy books earnings record in FY 2017/18

New Zealand hydro and wind power company Meridian Energy Ltd (NZE:MEL) managed to slightly increase its EBITDAF in the 12 months to the end of June, reaching the highest levels, in spite of lower power generation in New Zealand.

EBITDAF, defined as earnings before interest, tax, depreciation, amortisation, changes in fair value of hedges and other significant items, rose by 1.4% on the year to NZD 666 million (USD 446.4m/EUR 385.6m) on the back of increased hydropower inflows in the second half of the fiscal year. The company’s Australian business also improved and lifted its EBITDAF in the period by 22%, Meridian said on Wednesday.

Net profit from ordinary activities climbed by 1% in annual terms to NZD 201 million, although underlying net profit declined to NZD 206 million from NZD 221 million, mainly due to higher income tax expense and depreciation and amortisation.

Operating cash flow decreased by 9% to NZD 427 million. Thanks to the strong cash flows, Meridian declared a 1.5% higher dividend for the year. Total operating revenues in the fiscal year improved to NZD 2.76 billion from NZD 2.32 billion a year back.

Meridian’s CEO Neal Barclay noted that the company has expanded its Australian renewable energy generation portfolio, while in New Zealand, it is offering solar photovoltaic (PV) solutions and power options for customers with electric vehicles.

(NZD 1.0 = USD 0.670/EUR 0.579)

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