Mighty River Quarterly Operational Update

Quarterly Operational Update

Three months ended 30 June 2013

• Fourth quarter operational statistics in line with company expectations

• Sales to customers down 3% on prior comparable period (pcp), but up 5% year on year

• Total generation down 16% on pcp as a result of lower hydro generation

Mighty River Power’s operating statistics for the quarter to 30 June 2013 confirm the Company’s full year operational figures to be in line with expectations included in the Mighty River Power Share Offer Investment Statement and Prospectus (dated 5 April 2013).

Electricity sales volumes to customers decreased 3% on the prior comparable period (pcp), driven by lower volumes to commercial customers, which were down from 679GWh to 638GWh. However, sales for the year to 30 June 2013 were up 5% to 5,252GWh. Business volumes in the quarter reflect the tail of strong growth with medium-sized commercial customers, offset by a drop in volumes of sales to small and large commercial customers. The average price received from customers over the quarter was $126.76/MWh, and $117.28/MWh for the 12 months.

Overall electricity generation volumes were down 16% on the pcp, and down 9% for the 12 months to 30 June 2013, largely as a result of reduced hydro production due to lower-than-average inflows into the Waikato catchments. In April, Mighty River Power recorded the lowest monthly hydro production on record having started the quarter with storage at 33% of historical average. The Company saw an improvement in inflows into the catchments later in the quarter, which was expected for that time of the year, and ended the financial year with storage at 79% of historical average.

Geothermal production in the quarter was lower than pcp, primarily due to planned maintenance at the Mokai and Kawerau stations. In addition to the 1,379GWh total generation during the quarter, Ngatamariki has generated 61GWh during commissioning activity in the period, which is not included in the reported figures.

Gas-fired generation volumes were also down on the pcp due to lower wholesale market prices following higher inflows (compared to the pcp) into other generators’ South Island hydro catchments.

The level of buy-side contracts for difference (CfD) increased on the pcp, principally reflecting new hedging arrangements to minimise the Company’s downside exposure during a sustained period of drought induced low hydro generation.

The Company saw an improvement on the pcp in the relative wholesale price it received for its generation compared to the wholesale price paid for purchases (LWAP/GWAP), which moved from 1.13 to 1.03 through active portfolio management, an improved national grid configuration and lower South Island pricing relative to the North Island.

Mighty River Power will release its financial results for the 12 months ended 30 June 2013 on Wednesday 28 August 2013.
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