Meridian Energy's first-half profit is down as its power generation dropped 16 percent on the year earlier.
The power company's net profit fell 12.8 percent to $109 million in the six months to the end of December.
Revenue was up 27 percent to $1.44 billion, but margins were down by 5 percent.
Meridian's chief executive Neal Barclay said the result reflects persistently low South Island hydro inflows over the past six months, but was pleased with growth its growth in Australia.
"We have also secured three hydro stations in New South Wales and signed a further three power purchase agreements to ensure that we can continue to support Powershop growth in Australia," he said.
"We're finding there is a strong and growing desire from Australian electricity consumers to support a 'green' energy retailer."
Meridian increased the interim dividend payout to shareholders by 1 percent to 5.38 cents a share, with a further special dividend payment of 2.44 cents as part of its capital management programme.