Meridian earnings strong, but smelter deal cuts value nearly $500m

Sun, 11 Aug 2013

By Pattrick Smellie Aug 12 (BusinessDesk) - Meridian Energy has turned in a strong 53 percent increase in underlying net profit after tax of $162.7 million, but has had to write down the total value of its assets by $476 million to reflect the lower power prices it will get from the Tiwai Point aluminium smelter. The new smelter deal, announced last week, returns the prices to be paid by the smelter under new contracts that came into force on Jan. 1, but which majority owner Rio Tinto sought to renegotiate after a fall in global aluminium pri...

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