Meridian Annual Report - Meridian Energy

70
Meridian Energy Limited — Notes to the Financial Statements (continued)
During 2008 Meridian’s strategy, which was unchanged from 2007, was to maintain the gearing ratio below 35% and a BBB+ credit rating. The gearing
ratios at 30 June 2008 and 30 June 2007 were as follows:
2008
$’000
group
2007
$’000
Borrowings – NZD Equivalent Net of Foreign Exchange Hedging 1,004,649 754,649
Less: Cash and Cash Equivalents 64,645 44,755
Net Debt 940,004 709,894
Equity Attributable to Shareholders of the Parent 4,201,295 4,390,180
Adjust for Net Effect of Fair Value of Financial Instruments 3,472 (18,762)
Adjusted Shareholders’ Equity 4,204,767 4,371,418
Total Capital 5,144,771 5,081,312
Gearing Ratio 18.27% 13.97%
All externally imposed capital requirements have been complied with.
23. Derivative Financial Instruments
Assets
Held for Trading CfD’s 58,069 164 58,069 164
Interest Rate Swaps 13,096 26,927 13,096 26,927
Foreign Exchange Contracts 111 - 111 -
2008
$’000
Group
2007
$’000
2008
$’000
Parent
2007
$’000
Cash Flow Hedges CfD’s 42,217 13,831 42,217 13,831
Foreign Exchange Contracts 25,649 21 25,567 21
Total 139,142 40,943 139,060 40,943
Disclosed as:
Current 37,500 1,055 37,426 1,055
Non-current 101,642 39,888 101,634 39,888
Liabilities
Held for Trading CfD’s 12,837 239 12,837 239
Interest Rate Swaps 489 - 489 -
Foreign Exchange Contracts - 79 - 79
Cash Flow Hedges CfD’s 101,617 2,794 101,617 2,794
Foreign Exchange Contracts 1,344 6,691 1,344 6,691
Cross Currency Interest Rate Swaps (margin) (292) 1,106 (292) 1,106
Fair Value Hedges Cross Currency Interest Rate Swaps 54,907 116,793 54,907 116,793
Total 170,902 127,702 170,902 127,702
Disclosed as:
Current 46,068 3,583 46,068 3,583
Non-current 124,834 124,119 124,834 124,119
Meridian considers that the carrying amount of derivative instruments, accounts receivable and available for sale investments approximates their fair values.