Sharechat Logo

Mercury lifts 2017 earnings guidance a third time on higher hydro generation

Thursday 8th June 2017

Text too small?

Mercury Energy, the electricity generator-retailer formerly known as MightyRiverPower, raised its 2017 earnings guidance for a third time based on increased hydro generation in the Waikato catchment.

Auckland-based Mercury expects earnings before interest, tax, depreciation, amortisation and fair value adjustments to be $520 million in the 12 months ending June 30, up from $493 million a year earlier. That's a $10 million increase from its revised guidance in April.

The upgrade “is due to a 200 GWh increase in full-year forecast hydro generation resulting from persistently strong inflows across the Waikato catchment,” the company said. "Hydro generation is now forecast to be 4,700 GWh for the financial year, or 700 GWh above annual average hydro generation."

Mercury said other 2017 guidance remains unchanged.

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.

The shares last traded at $3.31 and have gained 12 percent so far this year.

Meanwhile, wholesale electricity prices have been rising because inflows to the larger South Island hydro catchments are running well below average.

(BusinessDesk)



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Sky CEO put on notice by chunky vote against salary share scheme
Unions gearing up to oppose 'market tests' on Fair Pay Agreements
Mandatory farm plans scorned as 'tick box' exercises
Kiwi dollar firms on weak US retail data, capped by rate-cut expectations
17th October 2019 Morning Report
SkyCity hoses down union claims over potential job losses
OPINION: Fair Payment Agreements and 'swallowing vomit' - the lot of the CTU
MARKET CLOSE: NZ shares gain; Restaurant Brands climbs on upbeat outlook
NZ dollar stalls after Bascand's rate cut comments
Bascand says RBNZ will consider changing bank capital proposals

IRG See IRG research reports