News | Business
24 Apr 2018 10:58
NZCity News
NZCity CalculatorReturn to NZCity

  • Start Page
  • Personalise
  • Sport
  • Weather
  • Finance
  • Shopping
  • Jobs
  • Horoscopes
  • Lotto Results
  • Photo Gallery
  • Site Gallery
  • TVNow
  • Dating
  • SearchNZ
  • NZSearch
  • Crime.co.nz
  • RugbyLeague
  • Make Home
  • About NZCity
  • Contact NZCity
  • Your Privacy
  • Advertising
  • Login
  • Join for Free

  •   Home > News > Business

    Big wet spurs Mercury earnings upgrade

    Electricity generator Mercury NZ raised annual earnings guidance as persistent wet weather swelled the electricity generator-retailer's hydro scheme.


    Electricity generator and retailer Mercury NZ raised annual earnings guidance for a third time as persistent wet weather in the central North Island swelled the electricity generator-retailer's hydro scheme.

    Earnings before interest, tax, depreciation, amortisation and fair value movements are expected to be $540 million in the year ending June 30, up from a previous forecast of $530m, which had already been upgraded on the favourable weather.

    Mercury reported ebitdaf of $523m in 2017.

    "This is due to an expected 150 GWh (gigawatt hour) increase in full year forecast hydro generation due to continued wet weather in the Taupo area," the company said in a statement.

    "Annual hydro generation is now forecast to be 4700 GWh for the financial year, or 700 GWh above average."

    Mercury and Trustpower have enjoyed improved earnings outlooks for the 2018 financial year with rain patterns benefiting their North Island generation, while their rivals with large South Island hydro catchments have contended with lower lake levels than normal.

    The company's hydro generation rose 8.5 per cent to 1035 GWh in the three months ended March 31 from a year earlier, while the volume weighted average price jumped 58 per cent to $87.34 per megawatt hour.

    Geothermal generation dropped 5.9 per cent to 591 GWh and Mercury's share of the Tuaropaki Power co-generation venture fell 17 per cent to 45 GWh, while volume weight average prices climbed 53 per cent to $75.39/MWh and 55 per cent to $78.21/MWh respectively.

    "Mercury continued to benefit from high inflows into the Waikato catchment with hydro generation in the quarter reaching 114 per cent of average," it said.

    "The increased hydro contribution offset a reduction in geothermal output at Kawerau due to a planned two-yearly maintenance outage."

    Mercury's retail electricity customer numbers edged up 1000 to 391,000 in the March quarter from a year earlier, while retail sales slipped 3.5 per cent to 1266 GWh on a 64 per cent increase in average price to $87.92/MWh.

    The shares last traded at $3.305 and have gained 4.6 per cent so far this year.


    NZN




    © 2018 NZN, NZCity


     Other Business News
     24 Apr: NZ dollar falls to three month low
     24 Apr: Pressure on government on housing
     23 Apr: NZ dollar holds just above US72c
     23 Apr: Shares fall in light trading, Fletcher up
     23 Apr: Cattle disease weighs on farm sales
     23 Apr: QEX Logistics margins wider than expected
     23 Apr: Forestlands liquidation sought by FMA
     Top Stories

    RUGBY RUGBY
    NZ Rugby calls discrimination the enemy More...


    BUSINESS BUSINESS
    NZ dollar falls to three month low More...



     Today's News

    Entertainment:
    Avicii’s death is not being treated with “criminal suspicion” 10:53

    Rugby League:
    Manly ace backs Cherry-Evans as captain 10:46

    Sports:
    King out in Egypt squash second round 10:26

    Entertainment:
    Kylie Minogue believes she was “deluded” into thinking that her relationship with Joshua Sasse would work out 10:23

    Hamilton:
    Why the Royal baby might be named Arthur or Albert (and certainly won't be Rocco or Cruz) 10:16

    Accident and Emergency:
    Australian woman safe after getting lost 10:06

    Entertainment:
    Avicii’s body is to be flown home to Sweden this week 9:53

    Rugby:
    NZ Rugby calls discrimination the enemy 9:36

    Business:
    NZ dollar falls to three month low 9:26

    Entertainment:
    Angelina Jolie’s nine-year-old son Knox is learning to fly a plane 9:23


     News Search






    Power Search


    © 2018 New Zealand City Ltd