Meridian Energy Ltd
MEZ: XASX (AUS)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
A$7.30 | Trdytm | Whkqdfmq |
Meridian Energy: Strong Underlying Earnings Growth Continues
Narrow-moat Meridian Energy’s underlying earnings continue to grow strongly despite lower hydroelectric volumes. For fiscal 2024 year to date, we estimate EBITDA growth of close to 5% but growth would be in the midteens if it wasn’t for some abnormally large hedge gains in the previous corresponding period, or PCP. For the full fiscal year, we forecast EBITDA climbing 9% to NZD 852 million, with the key drivers being higher electricity prices for mass market and wholesale customers.