Meridian described its year to June as a ''game of two halves''.
The lack of rain in Meridian's Waitaki and Waiau catchments since the beginning of February resulted in the driest February to June period since records began 84 years ago.
Meridian's chief executive Mark Binns described the year as a ''good financial result'', despite poor inflows into its southern catchment of lakes, prompting it to call on a deal with Genesis Energy to supply electricity from North Island fossil fuel generation.
Meridian's earnings before interest, tax, depreciation, amortisation and changes in the value of financial instruments (Ebitdaf), were up just 5% at $653million.
''This was reached through achieving a very good result in the first half of the year, while limiting the impact of low [southern] lake levels in the second half, through astute risk management,'' Mr Binns said.
Total revenues were down from $2.37billion a year ago to $2.319billion, while expenses declined from $1.72billion to $1.66billion.
Earnings before interest and tax declined 6% to $389million, while reported after-tax profit rose 48% from $133million a year ago.
Meridian said up to January its profit was more than $20million ahead of last year's result, but after that there were successive months of lower profitability as generation was constrained.
Meridian posted a 3% improved final dividend of 11.1c per share, taking the full year to 18.9c. Meridian shares rose slightly following the announcement to $2.95, up more than 9% on a year ago.
Craigs Investment Partners broker Peter McIntyre said while the five-month weak water inflows held back performance, its flat $653million Ebitdaf highlighted Meridian's good risk mitigation.
''Retail volumes fell 2%, however this was largely due to a falling irrigation load,'' he said.
Forsyth Barr broker Damian Foster said the $653million Ebitdaf was $3million ahead of expectations, and $3million up on the same period last year.
''Given the dry finish to the end of the year, it's a solid result,'' Mr Foster said.
He was critical of Meridian having provided ''little useful outlook commentary'', other than saying July was a difficult start to the new financial year, but August hydro inflows had been above average.
Outside of the financial result, Mr Foster said the main announcement was that the Powershop IT platform had been separated from the retail business, now called Flux Federation.
''The licensing of this platform to nPower in the UK has gone well so far, with initial revenues being reported,'' Mr Foster said.
Mr Binns said despite the dry period, Meridian still generated 31% of the country's electricity, just slightly below average generation market share.
He warned of a ''slow start'' to the 2017-18 financial year, with Meridian continuing to generate less from its hydro assets and buying more electricity under arrangements with other generators.
In July, hydro inflows were 93% of average, but Meridian reported its storage was still low.
Lake Pukaki storage was at present at 71% of the historical average, but was at 46% of the storage held at the same time last year.
Meridian said the current financial year would show the impact of a full year of new, higher pricing for the Rio Tinto owned Tiwai Point aluminium smelter, which is Meridian's single largest customer and uses up to 14% of the entire country's output; supplied from Meridian's Manapouri generation.
''While [Tiwai] electricity pricing, given its impact on the smelter's costs, is always a point for debate, we believe the retention of the smelter is the best outcome for Meridian, the electricity industry and New Zealand,'' Meridian said.
