Analyst Note| Adrian Atkins |
We adjust our fiscal 2021 earnings forecasts for the four major New Zealand utilities following release of their June operating performance reports. The earnings changes mostly stem from volatility in rainfall and wholesale electricity prices, and don't impact our long-term-based fair value estimates. Narrow moat ratings remain intact, underpinned by dominant positions in New Zealand's electricity industry and long-life, low-cost, renewable power stations. Nonetheless, they are expensive, particularly the 100%-renewable Mercury NZ and Meridian Energy.