INDEPENDENT NEWS

Mercury nudges up earnings guidance

Published: Thu 20 Apr 2017 12:06 PM
Thursday 20 April 2017 09:01 AM
Mercury nudges up earnings guidance on increased hydro generation
By Paul McBeth
April 20 (BusinessDesk) - 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.
(BusinessDesk)
BusinessDesk
Independent, Trustworthy New Zealand Business News
The Wellington-based BusinessDesk team led by former Bloomberg Asian top editor Jonathan Underhill and Qantas Award-winning journalist and commentator Pattrick Smellie provides a daily news feed for a serious business audience.
Contact BusinessDesk
Email:

Next in Business, Science, and Tech

Commission welcomes dismissal of NZME/Fairfax merger appeal
By: Commerce Commission
New Chief Technology Officer role created
By: New Zealand Government
NZ house sales slump in December but prices still firm
By: BusinessDesk
Beef + Lamb New Zealand launches drought resources
By: NZ Beef and Lamb
Net Neutrality Failure in US Will Hurt All Internet Users
By: Internet NZ
Technology transforms consumer spending
By: Statistics New Zealand
Results Judgment: NZME merger appeal dismissed
By: New Zealand High Court
NZME, Fairfax reviewing rejected merger appeal
By: BusinessDesk
High Court rejects NZME/Fairfax NZ appeal
By: BusinessDesk
Wellington rentals in hot demand as rental shortage bites
By: Trade Me Property
Strong end to 2017, with house prices up 5.8% in December
By: REINZ
Regions still strong, says real estate boss
By: Century 21 Real Estate
Minister silent while farmers wilt
By: New Zealand National Party
Westpac NZ Offers Relief to Farmers Affected by Drought
By: Westpac
Fronts and fine weather in the mix
By: MetService
View as: DESKTOP | MOBILEWe're in BETA! Send Feedback © Scoop Media