Meridian Energy posts $452m net loss in challenging year, eyes growth

Meridian Energy reported operating cash flows of $318 million for the year ended June 30, 2025, a decrease from $667 million in the previous year. The company recorded a net loss after tax of $452 million, a stark contrast to the net profit after tax of $429 million in FY24. EBITDAF fell to $611 million from $905 million, and underlying net profit declined significantly from $359 million to $56 million. These results were primarily driven by a 23% decrease in energy margin, which fell to $982 million from $1.276 billion, largely due to two severe droughts and $300 million spent on hedge and demand response contracts.

Despite the financial challenges, Meridian focused on strategic growth and security of supply. The company secured five resource consents for new assets, invested $193 million in generation plant, acquired two businesses, and initiated a strategic reset of its retail business, leading to increased customer connections. The board declared a final ordinary dividend of 14.85 cents per share, bringing the total ordinary dividends for FY25 to 21.00 cents per share.

Looking ahead, Meridian plans substantial investments, with over $350 million allocated for new and existing assets in the 2026 financial year and a total of $2 billion over the next three years. The company is advancing its 7-in-7 renewable build program, with the 176MW Harapaki Wind Farm fully operational and the 100MW Battery Energy Storage System (BESS) at Ruakākā Energy Park completed in May 2025.