Meridian Energy's magic number - $666 million

The Benmore power station is one of Meridian Energy's hydro plants. Photo /Richard Robinson

Meridian Energy has achieved its highest level of earnings, up to $666 million, and net profit rose marginally to $201m for the year ended June 30.

The company said it overcame its lowest New Zealand generation since 2013.

Group earnings increased 1.4 per cent to $666m, due to better hydro inflows in the second half of the year, which helped to turn around a half year ebitdaf decline of 7 per cent.

Chief executive Neal Barclay said strong cashflows allowed Meridian to declare a 1.5 per cent higher dividend for the year, which includes a continuation of shareholder returns under the company's exiting capital management programme.

Net profit rose marginally to $201m for the year ended June 30, from a restated $200m a year earlier. Earnings before interest, tax, depreciation, amortisation and changes in financial instruments rose from $657m a year earlier.

Prior year earnings were restated for a change in accounting policy.

Meridian previously reported a 6 per cent decline in total generation for the period to 12,528 GWh.

The company plans to pay a final dividend of 8.94 cents on October 17, up from 8.7c a year earlier.

It will also pay a final capital management special dividend of 2.44c, unchanged from a year earlier. That is part of a five-year programme started in 2015 to return $625m to investors.

"Meridian is also introducing a new capital management plan of $250m over two years. This will commence in August 2020 at the completion of the current programme and cease in February 2022."

Meridian is the country's biggest generator with hydro stations in the South Island and windpower plants.

The electricity sector would play a key role in enabling the Government to achieve its goal of zero carbon by 2050.

''We're looking forward to helping tackle New Zealand's carbon emissions and combat climate change with the support of renewable energy. The future is undoubtedly strong for our sector," said Barclay.

He said Meridian Group was now net zero carbon across its operations.

''This year you will continue to see us further reduce our impact and our customers' impact on the planet. We plan to deliver some new initiatives that will support our goals and our country's goals to tackle climate change."

This year Meridian also expanded its Australian renewable generation portfolio to support the continued growth of its Australian retail brand, Powershop.

Barclay said that in New Zealand, Meridian continued to support customers who wanted to take advantage of renewable energy through a market-leading electric car plan, which provides customers who have EVs, cheap overnight rates.