Full Year 2024 Meridian Energy Ltd Earnings Call Transcript
Key Points
- Meridian Energy Ltd (MDDNF) delivered a record $667 million in operating cash and $905 million in EBITDAF for FY24.
- The company successfully completed the Harapaki wind farm on budget and on time, with excellent initial yields.
- Meridian Energy Ltd (MDDNF) has a clear line of sight to $3 billion in renewable project investments through the remainder of the decade.
- The company has lodged a reconsideration application for the Waitaki hydro scheme, which is essential for New Zealand's low carbon future.
- Meridian Energy Ltd (MDDNF) has implemented a demand response agreement with NZAS, which has proven valuable during recent drought conditions.
- Global inflationary pressures have led to the decision to put the Southern Green Hydrogen project on hold.
- Drought conditions have resulted in the lowest hydro inflows on record, leading to unprecedented low storage levels and high wholesale prices.
- There is a scarcity of domestic gas, which has driven up electricity prices and created challenges for the sector.
- Operating expenses have increased significantly, driven by salaries, contractor spend, and ICT investments.
- Transmission and distribution costs are expected to rise significantly, potentially impacting customer bills by around 9%.
(spoken in foreign language) Good morning, everyone. If you're new to Meridian's profit announcement, I'm Neal Barclay, Meridian's Chief Executive and I have with me our Chief Financial Officer, Mike Roan. We will talk through aspects of the financial results for the last year and will also provide perspective and context for the current market conditions.
On balance, we think the business performed strongly during FY24 across the board, and we knocked off several major milestones. The top of that list was the long term deals struck with the New Zealand Aluminum Smelters or NZAS.
The two standout features of the deal were firstly, the 20 year term. That has removed massive uncertainty for the sector and allowed us to reset both our dividend policy and renewable build program. And secondly, the demand response agreement. And we're seeing just now how valuable that has turned out to be.
We delivered the Harapaki wind farm on budget and on time. The wind farm is now fully operational and yearly one yields have been absolutely
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
