Hello everyone, from my stance looking at the report I can get the following take away.
Retail, wholesale and commercial businesses are growing which is a positive however the poorer margins from the NZAS has been weighing overall topline, cashflow and EBITDAF1 down.
This is somewhat expected however with aluminum prices rising there is an opportunity to improve the energy margins going forward.

What I am hoping someone would help me with is understand is whether or not there is any material impact of the drop in the value of hedge instruments?
Please see from above report
"Meridian Energy has reported net profit after tax of $145 million from continuing operations for the six months ended 31 December 2021, $82 million (36%) lower than the same period last year, mainly reflecting negative changes in the value of hedge instruments."

When I look at the income statement I can see the main culprit is:
Net change in fair value of energy hedges - (68) vs previous period 73

Going into the notes under D1 I have found that they are a combination of:
1. Total Treasury Hedges - Assets 82 vs previous period Assets 88
2. Foreign Exchange hedges and swaps - Assets 24 Liabilities (84) vs previous period Assets 24 Liabilities (207)
3. Energy Hedges - Assets 256 Liabilities (52) vs previous period Assets 194 Liabilities (64)

Net Position Assets 362 Liabilities (136) vs previous period Assets 306 Liabilities (271)

Unfortunately I was not able to make sense of the notes enough to make this section balance the income statement...
However going back to my initial question, does this have any material impact on the actual profitability of the business?
Also if anyone would like to assist in making this balance I would very much appreciate it.