MRP dampens profit expectations

Friday 11th June 2010

MightyRiverPower expects its full-year operating profit to be at the bottom of its forecast range of between $315 million and $350 million.

The weak result reflected severe drought in the Waikato river catchment, where MRP has hydro-electric power stations, including historically low inflows into Lake Taupo, which feeds the Waikato River.

The company also revealed higher operating costs caused by "unexpected injection disruptions at the company's Kawerau geothermal power station over the past few months".

MRP reported record earnings before interest, tax, depreciation, and amortisation of $445.4 million in the last financial year, when when high hydro volumes and wholesale electricity prices coincided during winter 2008, in what the company says was a "one-off benefit to earnings".

Inflows to Taupo had been the second worst since 1927 for the March to mid-May period.

Businesswire.co.nz

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