Meridian Energy has reported a net loss after tax of $NZ452 million for the year ended June 30, a stark contrast to the $NZ429 million profit recorded in the previous year. The downturn was attributed to severe droughts and weak hydro inflows, which significantly cut margins and drove up operational costs. Meridian Energy is a renewable energy company that generates electricity from hydro, wind, and solar sources. It also retails electricity to homes and businesses throughout New Zealand.
Energy margin experienced a 23 per cent slide to $NZ982 million. In response, the company invested $NZ300 million in hedge and demand response contracts to safeguard security of supply amidst challenging conditions. Chief executive Mike Roan described the year as being defined by “a perfect storm” of low hydro and wind resources, coupled with gas shortages and two drought events. These factors collectively necessitated the largest demand response with New Zealand Aluminium Smelters.
Despite the financial setbacks, Meridian Energy’s board has declared a final dividend of 14.85¢ per share. This decision brings the full-year ordinary dividend to 21¢, maintaining the same level as in FY24, demonstrating a commitment to shareholder returns despite the difficult operating environment. The company will be hoping for improved environmental conditions and greater stability in the energy market in the coming year.
