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Mercury has more than doubled its full-year profit, as operating earnings improved thanks to high wholesale electricity prices and changes in the value of unhedged financial assets.
Key numbers for the 12 months ended June compared with a year ago:
- Net profit $290m vs $103m
- Revenue $3.42b vs $2.73b
- Operating earnings $877m vs $841m
- Final dividend 14 cents per share vs 13.1 cps
Mercury said hydro generation of 4096 gigawatts was down 21 percent on the prior year's record generation as lake levels fell due to low rainfall.
Operating earnings rose by $36 million, supported by an increased trading margin of $1.23 billion (up $65m from 2023), driven by high wholesale power prices and new wind generation from the Kaiwera Downs wind farm.
Its net profit was also boosted as the prior year's results included a $41m revaluation loss of generation assets and an accounting write down of $12m.
The 2024 bottom line profit was also supported by positive unrealised movements in derivatives and carbon.
Mercury chair Scott St John said the company expected electricity price pressure to continue for some time, which reflected the need for more expensive thermal generation.
"As we continue to invest in renewables, generating capacity must remain flexible enough to quickly adjust to changing environmental conditions, such as low rainfall or cloudy, still days," St John said.
"Gas has a critical role as a transition fuel. Gas supply challenges need to be addressed head on with recent projections highlighting this may continue to impact energy markets through to early 2026," he said.
Mercury expected operating earnings of $820m in the year ending June 2025 and dividend guidance of 24 cents per share, which would be its 17th consecutive year of ordinary dividend increase.
Mercury also announced the appointment of Stew Hamilton, its general manager of generation, to succeed chief executive Vince Hawksworth, who would step down at the end of August.