Electricity company Mercury Energy has posted a significantly improved bottom line, boosted by a $367 million net gain on the sale of Tilt Renewables, as well as investment in new wind generation.
Photo: 123rf
Key numbers for the 12 months ended June compared to a year ago:
- Net profit $469m vs $141m
- Underlying profit $581m vs $463m
- Revenue $2.19b vs $2.05b
- Generation 7,499 GWh vs $6,205 GWh
LI] Final dividend 12 cents per share vs 10.2cps
"This has been a year like no other," Mercury chief executive Vince Hawksworth said.
"In less than 12 months, we have become New Zealand's largest wind generator after having no operating wind generation at the start of the year. "
He said the sale of Tilt Renewables shareholding was immediately reinvested into the associated acquisition of Tilt's New Zealand operations and future development options.
Hawksworth said the company had also become the largest electricity retailer, following the purchase of Trustpower's retail business for $467m.
He said mostly dry weather until June weighed on Mercury's performance, as elevated electricity spot pricing persisted during FY2022.
However, he said wet conditions from June had seen spot price levels ease as hydro generation displaced expensive thermal.
"Forward electricity prices remain high over the medium-term reflecting the transition away from fossil fuels with high gas and coal prices as well as rising carbon prices," Hawksworth said.
"High electricity spot prices mean we are focused on completing the southern section of the Turitea wind farm by mid-2023 and developing new wind and geothermal generation.
"We are embarking on a major period of growth and are well-positioned to thrive in a rapidly changing world that is increasingly recognising the urgency with which we must decarbonise."
He said Mercury was on track to exceed its three-year objective to increase its underlying profit to $700m on a normalised basis and had increased its target to $800m.
The company was expected to make an underlying profit of $580m in the current year ($756m on a normalised basis).