apr-11.pdf (2.07 MB) - Crown Ownership Monitoring Unit

Meridian Energy LimitedCHAIR » Chris MollerBOARD » Peter Wilson,John Bongard, Mary Devine,Catherine Drayton, Anake Goodall,Stephen Reindler, Anne UrlwinCHIEF EXECUTIVE » Tim Lusk(Mark Binns from January 2012)ActivitiesMeridian is a generator, wholesalerand retailer of electricity.It is the largest of the energy SOEsand produces approximately30% of New Zealand’s electricity.All generation is from renewablesources, being a mix of hydroassets and wind farms.Meridian, together with subsidiary,Powershop, has a 14% share ofthe New Zealand retail market.It also supplies power to theTiwai Point aluminium smelter,which consumes about 14% ofNew Zealand’s total electricity.The company has investments inrenewable generation assets inAustralia and California.Financial performance measures2007 2008 2009 2010 2011ReturnsTotal shareholder return 17.7% 25.5% 0.5% 28.2% 7.2%Dividend yield 8.3% 5.9% 0.5% 5.8% 10.4%Dividend payout 152.8% 149.0% 18.3% 127.4% 428.8%Adjusted ROE 11.9% 6.9% 12.6% 15.9% 25.7%EfficiencyROCE 14.8% 9.2% 13.1% 15.0% 19.4%Operating margin 26.9% 14.3% 27.1% 31.1% 32.1%Generator efficiency 36 31 42 46 48LeverageNet gearing 11.2% 16.9% 21.7% 23.3% 19.0%Interest cover 10.80 6.42 7.15 7.97 6.28Current ratio 1.33 0.81 0.75 0.49 1.10OtherFive-year averageDividend growth 16.8%Revenue growth 3.7%Income statement$m 2007 2008 2009 2010 2011Revenue 1,774 2,603 1,892 2,062 2,053EBITDAF 477 371 512 642 660NPAT* 200 129 89 184 303Net energy revenue 719 646 742 920 907Balance sheet$m 2007 2008 2009 2010 2011Total assets 6,668 7,198 7,177 8,716 8,460Total liabilities 1,125 2,993 2,893 3,645 3,529Commercial value** 4,618 5,500 5,500 6,700 6,500Cash flow statement$m 2007 2008 2009 2010 2011Operating activities (net) 350 339 314 452 369Purchase of fixed assets 184 264 466 197 248Dividends paid*** 368 298 30 353 684Net cash flow (207) 20 (24) 7 314Note:* 2010/11 includes a gain on sale of $157.4 million relating to the sale of Tekapo assets** Commercial valuation from the SCI*** Includes one-off special dividends of $150 million in 2009/10 and $521 million in 2010/11page | 82