Macquarie sees upside for NZ's energy firms on aluminium smelter relief

Mercury NZ

03/06/2024 04:41

** Analysts at Macquarie see New Zealand's energy companies
to benefit from energy supply contracts with Rio Tinto's
 RIO.AX  New Zealand Aluminium Smelter (NZAS)
    ** Meridian Energy  MEL.NZ , Contact Energy  CEN.NZ  and
Mercury NZ  MCY.NZ  signed separate 20-year supply agreements
with NZAS on Friday
    ** "NZAS takes 13% of NZ's electricity; uncertainty over its
future has had something of chilling effect on investment in NZ
energy markets since 2007" - Macquarie
    ** Brokerage adds New Zealand has high renewable electricity
generation and untapped low cost resources, which can help
balance load growth and decarbonisation
    ** MEL and CEN have risen 10.5% and 9.9%, respectively this
year, while MCY has fallen 4.6% based on last close



 (Reporting by Aaditya Govind Rao in Bengaluru)
 ((Aaditya.govindrao@thomsonreuters.com;))