Meridian Energy Limited (NS) Analysis

Overview

As the country's main electricity generator and a significant retailer, Meridian is New Zealand's largest electricity company.

Meridian generates electricity from 100% renewable sources wind and water. The company generates approximately 30% of New Zealands 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.

Through the Meridian and Powershop brands, the company retails electricity to over 270,000 customer connections, including homes, businesses and farms around the country.

The company is committed to renewable energy and supporting the environments and communities where it operates. Meridian continues to focus on providing energy solutions that can help customers manage their energy use.

Meridian was incorporated in 1998 and began business in 1999, when Electricity Corporation of New Zealand Limited was split into three separate state enterprises: Meridian, Genesis and Mighty River. In this process, Meridian was allocated various South Island hydro assets. The company was listed on the NZX in October 2013 as part of the Governments Share Offer Programme. The Government retains 51% ownership of Meridian.

MEL has been granted Listing with a 'Non-Standard' ("NS") designation. This designation was granted because of provisions in MEL's constitution regulating the ownership and transfer of its Ordinary Shares due to the New Zealand government's shareholding. For further information, please see a copy of the waiver under Documents on Merdians' homepage on nzx.com

Performance

The following information was extracted from Meridian Energy Limited's half year results, released 25 February 2026:

Meridian Energy has reported operating cash flows of $336 million for the six months ending 31 December 2025. This compares to $50 million in the same period last year when the company’s financial performance was impacted by the cost of hedge and demand response contracts required to support customers and electricity security through the record drought of Winter 2024.

The company recorded a net profit after tax (NPAT) of $227 million, compared to a net loss after tax of $121 million for the first half of FY25. EBITDAF was $506 million, up from $257 million, while underlying NPAT increased from -$5 million to $143 million. The latter two are both non-GAAP measures.

Meridian’s results for 1H FY26 were fuelled by a $264m (59%) year-on-year increase in energy margin – the result of record wind generation and the second-best lake inflows on record. These conditions put downward pressure on wholesale electricity prices, with daily spot prices averaging $84 per MWh over the six months to 31 December and falling to an average of $12 per MWh in December. The company also achieved record retail sales volumes, up 12% on last year.

Meridian Chief Executive Mike Roan says this is a strong result and a welcome change from the hit the company took last year after committing significant funds to help support Aotearoa’s security of supply through Winter 2024.

“A core part of our business is to manage weather variability, so we were pleased Mother Nature came to the party in the first half of the year. These conditions helped deliver a strong financial result and a period of extremely low wholesale prices. This is a sign of a market that continues to function well.”

“At the same time, the job is not done. That’s why we continue to work hard to improve the electricity system and what it offers consumers. Over the past six months we have advanced our development pipeline, enhanced the performance of existing assets, maintained our pursuit of contingent storage and taken steps towards making electricity more affordable for Kiwi homes and businesses. These remain our top priorities and this strong result will help us deliver them more quickly,” says Mike Roan.

The Meridian Board has declared an interim ordinary dividend of 6.40 cents per share, up from 6.15 cents per share in the first half of FY25. The dividend reinvestment plan will apply to this interim dividend at a 2% discount.