The Meridian Energy Ltd (ASX: MEZ) share price is currently trading at $7.17, down 8.02% at the time of writing. Meridian shares have come under pressure today after the electricity company released its monthly update for December 2020.
We take a closer look at today’s update and what else the company has been up to recently.
More about Meridian Energy
Meridian Energy is the largest electricity producer in New Zealand and generates an estimated 35% of the country’s electricity. All of the electricity generated by Meridian Energy comes from 100% renewable sources — water, wind, and sun. New Zealand customers receive grid-supplied electricity, which is a combination of renewable and non-renewable sources.
Meridian Energy Australia shares the same principles and reiterates the company’s commitment to reducing the reliance on fossil fuels in order to minimise climate change and pollution.
The company trades on both the ASX and the NZX.
What’s moving the Meridian Energy share price today?
Meridian Energy shares have lost power after the release of today’s report, which noted that electricity demand in the last 12 months was 1.2% lower than the preceding 12-month period. It was 0.9% lower comparing the month of December 2020 to the month of December 2019.
The company believes these dips may be a product of a dry and mild season with average temperatures.
The 12-month average for customers switching providers without moving house was 6.3% at the end of December 2020. The 12-month average for customers that switched providers via a move was 12.9% at the same time.
Compared to the second quarter of 2020, Meridian Energy’s Australian retail sales volumes were 18% higher at a 17% lower average price. In New Zealand, volumes were up 13.6% at a 3.6% higher average price during for same period.
Any other news out of Meridian Energy?
In addition, Meridian Energy released a second announcement today stating that Blackrock Inc now holds a 7.09% stake in the New Zealand business. Prior to this, Blackrock held a 6.07% stake.
Whether or not this activity miffed investors is impossible to tell. However, when big institutions increase their holdings in any company, it’s not uncommon for the market to take notice.
Looking at the previous six-month timeframe, the Meridian Energy share price has shot up over 75%, giving the company a current market capitalisation of $19.98 billion.
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More reading
- Why the Meridian (ASX:MEZ) share price is dropping lower today
- ASX 200 rose 1.6%
- Here’s how ASX renewable energy shares have performed in 2020
Motley Fool contributor Gretchen Kennedy 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.
The post Here’s why the Meridian Energy (ASX:MEZ) share price slumped 8% today appeared first on The Motley Fool Australia.
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