Meridian Posts Good First-Half Result but Dry Conditions Likely To Drag on the Second Half

Narrow-moat-rated Meridian Energy reported EBITDA of NZD 422 million, a good result but down 9% on the same period last year, which was a record. We maintain our NZD 3.90 per share fair value estimate and consider the stock significantly overvalued. A NZD 5.7 cent per share interim dividend was declared, flat on last year excluding last year's special dividend. We forecast full-year dividends total NZD 17.5 cps, a yield of just 3.1% on the current share price.