Mercury Energy, the electricity generator-retailer formerly known as MightyRiverPower, increased annual earnings guidance 2 percent as unseasonably strong inflows in the Waikato catchment lifted the power company's hydro generation.
Auckland-based Mercury expects earnings before interest, tax, depreciation, amortisation and fair value adjustments to be $510 million in the 12 months ending June 30, up from $493 million a year earlier. The $10 million increase in guidance is Mercury's second upgrade, with the gentailer raising its annual forecast when posting its first-half result in February due to increased hydro generation.
"This is due to a forecast 250 GWh (gigawatt hours) increase in full year hydro generation to 4,500 GWh resulting from unseasonably strong inflows to the Waikato catchment," the company said in a statement. "Other FY2017 guidance remains unchanged."
Above-average rainfall through the latter half of last year helped bolster Mercury's first-half earnings, and the company today said those conditions continued in the March quarter. Of the increased generation forecast, 170 GWh reflected inflows into the Waikato catchment.
Still, the company's quarterly operating report showed national demand for electricity remained subdued, down 0.2 percent from the same period a year earlier as lower industrial use offset an increase in demand from dairy processors.
Mercury had 390,000 electricity customers at the end of March, up from 377,000 a year earlier, Its annualised churn rate of 17.6 percent was the lowest among the major retailers and below the market average of 20.5 percent, it said.
The shares last traded at $3.12 and have gained 5.4 percent so far this year.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- MARKET CLOSE: NZ shares drop 1% on global selloff, US stocks stumble on Trump about-face
- Trade wars: China strikes back with tariffs on US fruit, pork and pipes
- Wall Street tumbles as Trump fires first shots in US-China trade war
- Festival highlights from Wellington and Auckland: Vivaldi Recomposed, Swan Lake and Tea
- Finance minister calls for more KiwiSaver funds to be invested locally
Most listened to
- Big data has vulnerabilities too, and breach notification protects everyone, says Aura's Peter Bailey
- “Everybody’s run with it, to an amazing degree,” says Aratoi's Barbara Roydhouse of an auction featuring significant art works
- Tim Hunter on CBL's French subsidiary
- Wellington Council's Jacqui Hastie on the earthquake strengthening progress
- FSC boss Kim Carstensen urges foresters to stay the course
- NBR Radio: The best interviews – updated daily, with Grant Walker