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Rain boosts Mercury's first-half profit

NZ Newswire logoNZ Newswire 20/02/2017 Rebecca Howard
Electricity pylon © Getty Images Electricity pylon

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

The electricity generator and distributor, formerly known as MightyRiverPower says net profit increased to $113 million in the six months ended December 31 from $74m in the prior period.

Its earnings before interest, tax, depreciation, amortisation and fair-value adjustments lifted to $270m versus $257m.

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

Operating costs were down 6 per cent 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 $500m versus prior guidance of $495m.

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