Meridian Energy Ltd

MEL: XNZE (NZL)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	NZD 4.90	Qbmrb	Scspjymv

Meridian Energy: Strong Underlying Earnings Growth Continues

Adrian Atkins

Dec 20, 2023

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.

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