Mercury has made a strong first half net profit, despite weaker revenue.
Mercury's customer numbers increased by 11,000 in the first six months of the financial year. Photo: 123rf
The power company's net profit for the six months ended December rose 53 percent to $113 million, which reflected some one time gains associated with the closure of its gas-fired Southdown station in 2015.
The company said it also benefited from favourable hydro conditions, driving the underlying pre-tax profit up 5.1 percent to $270m, and forecast to rise to $500m for the full year to June.
Revenue fell 2.1 percent to $796m, while operating costs fell 6 percent due to lower maintenance costs.
The company's capital expenses were expected to be about $115m this year, with spending on hydro reinvestment and geothermal drilling.
Chief executive Fraser Whineray said customer numbers increased by about 11,000 in the first half, with an airpoints loyalty program tied to fixed-price contracts.
"This is the single-most successful retail offering in terms of uptake in the New Zealand electricity market, with 1-in-3 Mercury customers opting for the certainty of contracts," he said.
Mercury will pay a fully-imputed interim dividend of 5.8 cents per share.