ASX energy stock Meridian Energy Ltd (ASX: MEZ) is pushing higher today.
Shares in the dual-listed, New Zealand-based sustainable energy provider closed yesterday trading for $4.81. In morning trade on Thursday, shares are swapping hands for $4.82, up 0.2%.
For some context, the S&P/ASX 200 Index (ASX: XJO) is up 0.6% at this same time.
Longer term, Meridian Energy shares are down 7.2% over a year. That sees the ASX energy stock commanding a market cap of around $12.8 billion.
Meridian Energy shares also trade on a 3.7% unfranked trailing dividend yield.
Here's what investors are mulling over today.
Image source: Getty Images
ASX energy stock lifts on operating update
Meridian Energy shares are in the green following the release of the company's April operating report.
The ASX energy stock, which sources the majority of its power from hydro, noted rising hydro storage levels following another month of "sizeable inflows". This followed on a period of unseasonably heavy rainfalls.
Indeed, in the month to 11 May, the company reported that national hydro storage increased from 106% to 119% of the historical average. Breaking that down by region, South Island storage increased to 109% of average levels while North Island storage increased to 201% of average levels.
April also saw a 3.7% year-on-year increase in New Zealand's national electricity demand. This helped drive an 8.2% increase in Meridian's retail sales volumes.
Breaking that down by segments, year on year, Meridian's sales volumes in residential were 25.0% higher, small medium business were 9.2% higher, large business were 11.4% higher, agriculture were 6.1% higher, and corporate were 0.8% higher.
What did Meridian management say?
Commenting on the results that look to be supporting the ASX energy stock today, Meridian CEO Mike Roan said:
We're maintaining good momentum as we move through the second half of the financial year.
Significant rainfall events in the North Island and solid South Island inflows have boosted national hydro storage to close to 120% of average for this time of the year, meaning the country's electricity system is exceptionally well fuelled as we enter the cooler months.
What else is happening with the ASX energy stock?
Separately, Meridian reported that it had received consent to build a 120MW solar farm. This will be built alongside an already consented battery energy storage system (BESS) at Bunnythorpe, north of Palmerston North.
Bunnythorpe Energy Park will form part of a NZ$3 billion investment Meridian is making through to 2030 to build new renewable energy capacity.
Guy Waipara, Meridian general manager development, said:
We're thrilled to receive this approval… Solar energy is playing an increasingly important role in New Zealand's electricity generation, and we're excited to bring this to Manawatu.
