Meridian Energy Limited

Tuesday 5th April 2016

Meridian Energy Limited is engaged in the business of generation, trading and retailing of electricity, and the sale of complementary products and services. The Company supplies electricity to homes, businesses and farms. It operates through three segments: Wholesale; Retail, which is engaged in retailing of electricity and complementary products through its two brands: Meridian and Powershop in New Zealand, and International, which is engaged in the generation and retailing of electricity in Australia. Its Wholesale segment is engaged in the generation of electricity and sale into the wholesale electricity market; purchase of electricity from the wholesale electricity market and sale to the Retail segment and to large industrial customers, and development of renewable energy generation opportunities. Its hydro stations include Ohau A, Benmore, Aviemore, Waitaki and Manapouri; wind farms include Te Uku, Te Apiti, West Wind, Ross Island and Mt Mercer, and Maama Mai solar farm.

Meridian generates electricity from 100% renewable sources wind and water. The company generates approximately 30% of New Zealand’s electricity from its integrated chain of dams on the Waitaki River and Manapouri, which is the largest hydro power station in New Zealand, and four wind farms around the country. The company was listed on the NZX in October 2013 as part of the Governments Share Offer Programme for an initial public offer price of $1.50 over two installments.

Meridian Energy, the country's biggest electricity generator, lifted annual earnings 5.6 percent, beating its prospectus forecast.

Earnings before interest, tax, depreciation, amortisation and fair value adjustments, rose to $618 million in the 12 months ended June 30, from $585 million a year earlier, and was 5 percent above the company's prospectus forecast. Revenue rose 16 percent to $2.9 billion, and net profit after tax gained 7.4 percent to $247 million, assisted by a $62 million tax benefit caused by not being required to pay capital gains tax previously levied in Australia and a revised treatment for depreciation on its powerhouse buildings.

The board declared a final dividend of 8.08 cents per share (cps) and a special dividend of 3.95 cents, payable. That takes the total payout for the year to 18.23 cps, with a special dividend of 2.44 cps having already been paid this year.

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