Equity Analyst Valuation Reports
2009
2008
2007
2009
2009: Equity Analyst Valuation Reports on Genesis Energy, Meridian Energy and Mighty River Power
Under the State-Owned Enterprises Act 1986, one of the principal objectives of a State-Owned Enterprise (SOE) is to operate as a successful business. As part of the reporting of that success, the boards of SOEs are required to assess their estimate of the commercial value of the Crown’s investment and disclose their estimates annually in their Statements of Corporate Intent (SCI).
To increase transparency on the value of the Crown’s investment, equity-analyst style valuation reports have been commissioned in a similar format to those produced for companies listed on the New Zealand Stock Exchange. These research reports and valuations are based on publicly available information and each is designed to identify and examine the main drivers of company performance and, ultimately, value.
Macquarie Research completed the 2007 and 2008 reports and has repeated the exercise in 2009.
Over this three year period, COMU officials have also completed in-house shareholder valuations of the three companies based on the business plan information supplied as part of the Crown monitoring process. This year the 2009 COMU values are also disclosed for comparison purposes against the SCI values prepared by the SOE and the valuations completed by Macquarie.
Importantly, there will always be variation between individual assessments of the Crown’s interest as each valuation is independent of the other and utilises different information about the operations, investments and financing of each SOE. The valuations have been undertaken for the purposes of performance measurement and transparency, they should not be used for any other purpose.
The following table provides the comparison of the three valuations for each SOE completed in 2009.
|
Crown's Interest In:
|
|
2009 Value ($bn)
|
|
Mighty River Power
|
Macquarie |
3.7 |
| COMU |
3.7 |
| 2009 SCI |
3.5 |
|
Genesis Energy
|
Macquarie |
1.7 |
| COMU |
1.8 |
| 2009 SCI |
1.4 |
|
Meridian Energy
|
Macquarie |
4.8 |
| COMU |
7.6 |
| 2009 SCI |
5.5 |
Links To Macquarie Reports
