MEL - Meridian Energy

[boysy]

they do comment on page 5 noting that this is driven by far lower irrigation as a result of the very wet December in south island (aside from the hydro catchments). One wonders if the lower retail sales volume allows MEL to sell more generation into the wholesale market to get the benefit of spiking prices. As you mention are they replacing low income with spot volume (which i would imagine be far more profitable ?). While energy demand is fast in NZ for the year MEL generation still remains 10% up on last year ....

[Marilyn Munroe]

they do comment on page 5 noting that this is driven by far lower irrigation as a result of the very wet December in south island (aside from the hydro catchments). One wonders if the lower retail sales volume allows MEL to sell more generation into the wholesale market to get the benefit of spiking prices. As you mention are they replacing low income with spot volume (which i would imagine be far more profitable ?). While energy demand is fast in NZ for the year MEL generation still remains 10% up on last year ....

One trend in cockies irrigation practices is the piping of the water supply schemes and the drift to centre pivot irrigarors. The combination of low water pressure required by these irrigators and hydraulic head that becomes available from piped supply has massively reduced pumping requirements or in some cases eliminated them. Thus a reduced demand for electrons.

What influence has the starting of the fourth potline had on meridians supply-demand situation?

Boop boop de do
Marilyn

[bull....]

meridian actually gaining customers over the last 12mths compared to gne ,mcy,cen,trustpower who lost customers. the minnows like electric and vocus are sure eating away at the majors

[bull....]

tracking nicely last few mths cant complain

[boysy]

https://www.energylink.co.nz/sites/d...y_20190131.pdf

interim results due in 3 weeks - seems to be plenty of people chasing the SP higher in the past few months.

[couta1]

I reckon some of these power companies are so overvalued right now it's almost laughable, I wouldn't go near any of them, a very high price to pay for an average yield IMO.

[bull....]

I reckon some of these power companies are so overvalued right now it's almost laughable, I wouldn't go near any of them, a very high price to pay for an average yield IMO.

cheap , 90% chance of a rate cut this yr according to the futures. the worlds gone dovish makes them even more valuable gne . mcy mel , tpw , ift , vct ,aia , zel all lovely oh forgot cnu probably some others too

[couta1]

cheap , 90% chance of a rate cut this yr according to the futures. the worlds gone dovish makes them even more valuable gne . mcy mel , tpw , ift , vct ,aia , zel all lovely

Yeah right, HGH and TRA are cheap not these, ZEL okay, AIA no thanks, IFT not cheap either now. PS-Lets see what the market looks like come May.

[bull....]

Yeah right, HGH and TRA are cheap not these, ZEL okay, AIA no thanks, IFT not cheap either now. PS-Lets see what the market looks like come May.

hgh, tra lol both in downtrends all the others up trends stocks go up for a reason and down for a reason

[Beagle]

Wholesale bond rates have fallen and with the economy fairly weak speculation is on that the RBNZ is looking at an interest rate cut from the already very low level of 1.75%.
The power companies are doing well and Contact lifted its dividend policy yesterday from 80-90% of free cash flow, (mid point 85%) to 100% of FCF.
In a very uncertain world the stability, highly defensive properties and yield of the power companies looks like a safe harbour and with gross yields of up to 7.5% inclusive of partial imputation credits I think the rising share prices are a perfectly logical response to changing market and economic circumstances.

Disc: I have recently added to my investment in MEL and opened up a modest position in CEN yesterday. The gentailiers offer a relatively safe place to invest while still getting a good return. I find I don't worry about these companies at all, unlike some others.