Meridian positions itself for growth & innovation

Media Release: Monday 8 October 2007

Meridian positions itself for growth and innovation

Meridian Energy, New Zealand’s largest and the only certified carboNZero supplier of electricity, has reported a post-tax profit of $199.8 million for the year ended 30 June 2007.
 
Chairman Wayne Boyd says it has been an extraordinary year of progress for Meridian Energy.
 
“The past year marked the beginning of a new era of choice and control for our customers, he says.  
 
“We believe the outcome will be a revolution in the way New Zealanders buy, use and experience electricity.
 
“Electricity retailing has changed little in the past 100 years – retail customers simply pay for power after they have used it but they are unable to make informed choices about how they use it, at the time that it is used.”
 
Dr Keith Turner, CEO of Meridian, said: “To help our customers understand and make informed choices about their power usage, we have begun the installation of 110,000 smart meters in Christchurch, which over the next three-to-five years will start to change the way our customers use power.”
 
“We have also created a new Retail Directorate to provide an increased focus on the needs of our customers,” he says.
 
“The previous year’s $856.8 million post-tax result included an extraordinary one-off gain from the sale of Australian subsidiary Southern Hydro. The 2006/07 bottom-line was impacted, however, by a one-off adjustment arising from Meridian’s controlling interest in WhisperGen as well as increased depreciation following a substantial upwards revision in asset value.
 
“Operating results in the latest year were significantly better as a result of improved hydrology conditions in our main catchments.”
 
Earnings before interest and tax were up nine percent at $359.9 million ($330.7m) with energy revenues driven by a reduction in the cost of sales, as well as additional production sold into the wholesale market. Generation of 12,679 GWh was 32 percent of total New Zealand generation and was up significantly on Meridian’s generation of 11,265 GWh in the previous year, which was impacted by low inflows.  
 
Meridian Energy paid $300 million in dividends to the Crown in the 2006/07-year and a total of $1.1 billion in the calendar year 2006.
 
“Meridian is very proud to be able to make such a huge contribution to the Crown. It shows that an SOE can create real wealth for New Zealand and its people,” says Wayne Boyd.
 
Some other highlights for the 2006/07-year:
- Certification as a supplier of carbon-neutral electricity
- Asset revaluation upwards by $1.455 billion
- Opened the 58 MW White Hill wind farm near Mossburn – the South Island’s first wind farm
- Environment Court confirmation of resource consents for the 140 MW Project West Wind near Wellington
- Established three community funds providing $1.6 million over three years
Principal sponsor of Project Crimson – a trust to protect and renew the pohutukawa and rata
- Launched Irrigation Manager, a new electricity consumption management tool for rural customers
- Began the refurbishment of the Benmore power station
- Lodged water-only resource consents for the North Bank Tunnel Concept on the lower Waitaki River
- Lifted the capability of Manapouri from 585MW (in 1999) to a peak of 903 MW, reached in 2007.

ENDS

© Scoop Media