FIRST CUT: Mercury 1H profit jumps 53%, lifts full year guidance

Tuesday 21st February 2017

Mercury NZ increased first-half profit 53 percent, bolstered by favourable North Island hydro conditions and lifted its full year guidance.

The electricity generator and distributor, formerly known as MightyRiverPower said net profit increased to $113 million in the six months ended Dec. 31 from $74 million in the prior period. Its earnings before interest, tax, depreciation, amortisation and fair-value adjustments lifted to $270 million versus $257 million.

Forsyth Barr analyst Andrew Harvey-Green had expected the company to report a net profit of $85.9 million and ebidta of $259.8 million.

"Mercury's financial results reflect a strong operating performance, together with above-average rainfall that enabled a 7 percent increase in hydro generation," the company said.

Operating costs were down 6 percent due to lower maintenance costs in the period. Mercury said it would pay a fully imputed dividend of 5.8 cents per share on April 3.

The Auckland-based generator lifted the full year ebitdaf guidance it gave in November to $500 million versus prior guidance of $495 million.

BusinessDesk.co.nz

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