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Source: ONE News -
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Meridian Energy has reported an interim loss of $20.5 million, care of two large unrealised charges.
The underlying profit before the charges of $85 million in the six months to December 31 was down from $99.9 million in the same period last year.
International accounting rules require non-cash movements in the fair value of financial instruments, such as electricity and financial derivatives, to be recorded in the profit and loss statement.
That meant an unrealised loss on electricity derivatives of $55.9 million relating to the company's pricing agreement with New Zealand Aluminium Smelters went through the profit and loss statement - as did a n unrealised loss of $49.7 million on interest rate derivatives.
"Our financial result, however, highlights the importance to Meridian of both our current contract with Rio Tinto Alcan New Zealand and our future pricing agreement with New Zealand Aluminium Smelters Ltd for electricity supply to the Tiwai aluminium smelter," said Meridian chief executive Tim Lusk.
