Meridian Energy Limited ( (MDDNF) ) has released its Q2 earnings. Here is a breakdown of the information Meridian Energy Limited presented to its investors.
Meridian Energy Limited is a New Zealand-based company that operates in the renewable energy sector, primarily focusing on the generation and retailing of electricity. It is dual-listed on the New Zealand and Australian stock exchanges and is majority-owned by the New Zealand government.
In its latest earnings report for the six months ending December 2024, Meridian Energy Limited reported a challenging financial performance with a net loss after tax of $121 million, compared to a profit of $191 million in the same period the previous year. This was driven by significant volatility in energy prices and reduced hydro generation capacity.
Key financial metrics highlighted in the report include a decrease in operating revenue to $2,255 million from $2,111 million, while operating expenses remained relatively stable at $1,700 million. The company’s EBITDAF, a measure of operational performance, dropped to $257 million from $443 million. Additionally, the net change in the fair value of energy hedges resulted in a loss of $441 million, significantly impacting the bottom line.
Despite the setbacks, Meridian Energy continues to focus on strategic initiatives, including a new Power Purchase Agreement for a solar farm and plans to acquire the remaining shares in NZ Windfarms Limited. These moves are part of their broader strategy to enhance renewable energy capabilities and market position.
Looking forward, Meridian Energy’s management remains committed to navigating the current market challenges and pursuing growth opportunities in the renewable energy sector. The company’s strategic investments and focus on sustainable energy solutions aim to position it favorably for future performance improvements.