Latest news with #MeridianEnergy
RNZ News
7 hours ago
- Business
- RNZ News
Tiwai Point smelter to ramp up production
Photo: Power restrictions on the Tiwai Point aluminium smelter (NZAS) are being eased as hydro lakes levels have risen enough to ease fears of stretched power supplies this winter. An agreement between the smelter and its main power supplier Meridian Energy has allowed production to be cut and electricity usage reduced to preserve hydro resources. "New Zealand's hydro storage is looking much healthier than it was just a few weeks ago, so we are now confident regarding security of supply this winter. As a result, we want NZAS to get back to business," Meridian chief executive designate Mike Roan said. The smelter is the largest power user in the country and had been reducing its power usage by 50 Megawatts, which would start being phased out from the middle of the month allowing for an increase in aluminium production. "This is another example of how willing NZAS is to support New Zealand's electricity system while making some of the purest, renewable aluminium on the planet and we are hugely appreciative of that," Roan said. Under the agreement, Meridian has two options that can be called on if the power supply outlook deteriorates.
NZ Herald
7 hours ago
- Business
- NZ Herald
Tiwai Pt aluminium smelter to ramp up production as hydro lakes fill
New Zealand Aluminium Smelters' plant at Tiwai Pt in Southland will ramp up production sooner than expected thanks to improved hydro lake storage. The smelter has a demand response agreement with NZX-listed Meridian Energy that enables the power generator to request Tiwai, the country's biggest power user, to reduce production
Scoop
7 hours ago
- Business
- Scoop
Meridian And NZAS Agree To Shorten Current Demand Response
Press Release – Meridian New Zealands hydro storage is looking much healthier than it was just a few weeks ago, so we are now confident regarding security of supply this winter. As a result, we want NZAS to get back to business, says CEO designate Mike Roan. Meridian Energy and New Zealand Aluminium Smelters Limited (NZAS) have agreed that NZAS will ramp up production from 16 June 2025 to bring the current demand response to an end early, targeting a completion date of 11 August 2025 rather than 25 November 2025. NZAS will notify Meridian if the target completion date changes. The demand response option in place is Option 4. This is normally 185MW but currently modified to 50MW. 'New Zealand's hydro storage is looking much healthier than it was just a few weeks ago, so we are now confident regarding security of supply this winter. As a result, we want NZAS to get back to business' says CEO designate Mike Roan. 'This is another example of how willing NZAS is to support New Zealand's electricity system while making some of the purest, renewable aluminium on the planet and we are hugely appreciative of that.' Meridian will next have the ability to call for demand response Option 3 (100MW) or Option 4 (185MW) under the demand response agreement between the parties to take effect from 12 April 2026. Meridian will next be able to call demand response Option 1 (25MW) no sooner than 60 days after this ramp up finishes, and Option 2 (50MW) no sooner than 90 days after this ramp up finishes. A copy of the original demand response agreement and the new ramp-up agreement is available on Meridian's website at
Scoop
8 hours ago
- Business
- Scoop
Meridian And NZAS Agree To Shorten Current Demand Response
New Zealands hydro storage is looking much healthier than it was just a few weeks ago, so we are now confident regarding security of supply this winter. As a result, we want NZAS to get back to business, says CEO designate Mike Roan. Meridian Energy and New Zealand Aluminium Smelters Limited (NZAS) have agreed that NZAS will ramp up production from 16 June 2025 to bring the current demand response to an end early, targeting a completion date of 11 August 2025 rather than 25 November 2025. NZAS will notify Meridian if the target completion date changes. The demand response option in place is Option 4. This is normally 185MW but currently modified to 50MW. 'New Zealand's hydro storage is looking much healthier than it was just a few weeks ago, so we are now confident regarding security of supply this winter. As a result, we want NZAS to get back to business' says CEO designate Mike Roan. 'This is another example of how willing NZAS is to support New Zealand's electricity system while making some of the purest, renewable aluminium on the planet and we are hugely appreciative of that.' Meridian will next have the ability to call for demand response Option 3 (100MW) or Option 4 (185MW) under the demand response agreement between the parties to take effect from 12 April 2026. Meridian will next be able to call demand response Option 1 (25MW) no sooner than 60 days after this ramp up finishes, and Option 2 (50MW) no sooner than 90 days after this ramp up finishes. A copy of the original demand response agreement and the new ramp-up agreement is available on Meridian's website at
Yahoo
a day ago
- Business
- Yahoo
Are Poor Financial Prospects Dragging Down Meridian Energy Limited (NZSE:MEL Stock?
Meridian Energy (NZSE:MEL) has had a rough three months with its share price down 6.9%. We decided to study the company's financials to determine if the downtrend will continue as the long-term performance of a company usually dictates market outcomes. Specifically, we decided to study Meridian Energy's ROE in this article. Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. In short, ROE shows the profit each dollar generates with respect to its shareholder investments. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Return on equity can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Meridian Energy is: 1.5% = NZ$117m ÷ NZ$7.8b (Based on the trailing twelve months to December 2024). The 'return' is the amount earned after tax over the last twelve months. That means that for every NZ$1 worth of shareholders' equity, the company generated NZ$0.01 in profit. View our latest analysis for Meridian Energy So far, we've learned that ROE is a measure of a company's profitability. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features. As you can see, Meridian Energy's ROE looks pretty weak. Even when compared to the industry average of 12%, the ROE figure is pretty disappointing. Given the circumstances, the significant decline in net income by 5.5% seen by Meridian Energy over the last five years is not surprising. We believe that there also might be other aspects that are negatively influencing the company's earnings prospects. Such as - low earnings retention or poor allocation of capital. Furthermore, even when compared to the industry, which has been shrinking its earnings at a rate of 0.9% over the last few years, we found that Meridian Energy's performance is pretty disappointing, as it suggests that the company has been shrunk its earnings at a rate faster than the industry. Earnings growth is a huge factor in stock valuation. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. Is Meridian Energy fairly valued compared to other companies? These 3 valuation measures might help you decide. Meridian Energy's very high three-year median payout ratio of 174% over the last three years suggests that the company is paying its shareholders more than what it is earning and this explains the company's shrinking earnings. Paying a dividend higher than reported profits is not a sustainable move. Additionally, Meridian Energy has paid dividends over a period of at least ten years, which means that the company's management is determined to pay dividends even if it means little to no earnings growth. Upon studying the latest analysts' consensus data, we found that the company is expected to keep paying out approximately 148% of its profits over the next three years. Still, forecasts suggest that Meridian Energy's future ROE will rise to 6.6% even though the the company's payout ratio is not expected to change by much. In total, we would have a hard think before deciding on any investment action concerning Meridian Energy. Specifically, it has shown quite an unsatisfactory performance as far as earnings growth is concerned, and a poor ROE and an equally poor rate of reinvestment seem to be the reason behind this inadequate performance. With that said, we studied the latest analyst forecasts and found that while the company has shrunk its earnings in the past, analysts expect its earnings to grow in the future. To know more about the company's future earnings growth forecasts take a look at this free report on analyst forecasts for the company to find out more. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
