Mercury Energy returns record profit while southern competitors suffer

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NZN

Mercury Energy ran its North Island hydro generation hard while southern competitors suffered a dry winter, helping boost the electricity generator and retailer's net profit by 15 per cent to $184 million.

Source: 1 NEWS

"The record result was significantly influenced by an 858 Gigagwatt hours, or 22 per cent, increase in full year hydro generation from persistently strong inflows across the Waikato River catchment," said chief executive Fraser Whineray.

Combined with low capital expenditure requirements, the result for the year to June 30 allowed the Mercury board to declare not only a 2 per cent increase in fully imputed final dividend but a 5 cents per share special dividend, chairwoman Joan Withers said in a statement to the NZX.

On its preferred measure, the company saw earnings before interest, tax, depreciation, amortisation, and movements in the value of financial instruments rise 6 per cent to $523m.

The company gave EBITDAF guidance for the current financial year of $500m and a further increase in total annual dividends of more than 2 per cent at 15 cents per share.

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