Why the Meridian Energy (ASX:MEZ) share price is sliding

The Meridian Energy share price is sliding in morning trade. We take a look at the ASX energy share's latest report.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Meridian Energy Ltd (ASX: MEZ) share price is sliding in morning trade, down 1.4%.

Below we take a look at how New Zealand's largest sustainable electricity generator fared in April.

ASX renewable energy shares represented by wind turbines on a hillside

Image source: Getty Images

What did Meridian report for April?

Meridian Energy's share price is moving lower even though the company reported a 15.4% increase in national electricity demand compared to April 2020, when New Zealand was under strict COVID lockdowns.

Meridian, which relies heavily on hydropower, also revealed that in the month to 14 May, the somewhat depleted national hydro storage increased from 59% to 67% of its historical average.

But not all parts of its New Zealand operations gained. While hydro storage on South Island ramped up to 71% of the historical average, North Island saw water levels fall, with hydro storage sinking to 35% of the average by 14 May 2021. The company said that April was warmer and drier than average across much of the nation.

Reflecting the reopening of the country following largely successful virus suppression, Meridian reported that its April New Zealand retail sales volumes increased 36.9% year-on-year.

Breaking that down into segments, sales to small and medium-sized business (SMBs) leapt 91.7%, while large business sales increased 12.8% and corporate was up 39.9%. Agricultural sales grew strongly too, up 63.5%.

With more people returning to the office or simply out and about outside their homes, Meridian's residential sales segment decreased 2.3% compared to April 2020.

Both its energy supply costs and the price it received for power generation climbed steeply year-on-year. Meridian reported an 87.9% increase in the price it received while its costs to supply customers shot up 88.8%.

Power generation in Australia also increased, up 23.1% from April 2020. Meridian said that came from lower levels of wind generation and more hydro generation.

Meridian Energy share price snapshot

The Meridian Energy share price remains up 11% over the past full year, trailing the 29% gains posted by the S&P/ASX 200 Index (ASX: XJO).

2021 hasn't been as kind to shareholders.

After hitting an all-time closing high of $8.64 on 8 January, shares have fallen hard as some major institutional holders sold their stakes and retail investors digested the company's performance. That's seen the Meridian Energy share price fall 30% year-to-date, and sink 43% since 8 January.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Energy Shares

Coal miners look resigned to the end of mining this resource.
Energy Shares

Why this ASX coal stock is sinking 9% today

Stanmore shares slide following the Middle East ceasefire.

Read more »

Military soldier standing with army land vehicle as helicopters fly overhead.
Energy Shares

Up more than 10-fold over the past year, this ASX small-cap stock just jumped another 33%

A new defence division has investors excited.

Read more »

Worker working on a gas pipeline.
Energy Shares

Guess which ASX 300 energy stock is surging today on big AGL news

Investors are piling into this ASX 300 energy stock on Friday following a deal with AGL.

Read more »

A businessman looking at his digital tablet or strategy planning in hotel conference lobby. He is happy at achieving financial goals.
Energy Shares

Paladin Energy shares are jumping 7% on big news

This uranium producer is outperforming expectations in FY 2026.

Read more »

A sophisticated older lady with shoulder-length grey hair and glasses sits on her couch laughing while looking at her phone
Energy Shares

Paladin Energy hikes FY2026 outlook after Langer Heinrich ramp-up

Paladin Energy lifts its FY2026 uranium production guidance after strong mine performance and revises capital spending outlook.

Read more »

Man wearing green shirt and pink watch flexes his muscle. representing the strength in ASX shares at the moment
Energy Shares

Meridian Energy shares: Strong customer growth in March

Meridian Energy’s March 2026 report reveals strong retail sales, customer growth, and resilient hydro storage.

Read more »

A smiling woman puts fuel into her car at a petrol pump.
Broker Notes

Up 60% in a year, 3 reasons to buy Ampol shares today

A leading analyst forecasts more outperformance from Ampol’s surging shares. But why?

Read more »

Woman refuelling the gas tank at fuel pump.
Energy Shares

Why Ampol shares just hit a multi-year high as Australia's fuel squeeze deepens

Fuel supply concerns push Ampol shares to multi-year highs.

Read more »