Energy gentailer Mercury Energy says electricity supply security should be a key focus for those overseeing the industry. Shown: Mercury energy's Whakamaru Dam on the Waikato River. Photo: MIGHTY RIVER POWER
Mercury Energy's earnings have fallen on the back of lower renewable generation and higher costs, while slumping to a bottom-line loss due to changes in the value of unhedged contracts.
Key numbers for the six months ended December compared with a year ago:
- Net loss $67m vs $174m profit
- Revenue $1.76b vs $1.61b
- Underlying profit $418m vs $434m
- Generation 4191 GWh vs 4486 GWh
- Interim 9.6 cents per share vs 9.3 cps
Mercury chair Scott St John said the period was marked by significant challenges, including inflation and cost of living.
It said hydro inflows were low in the North Island, but Lake Taupō was above normal levels by the end of 2024, which Mercury said was due to it rebuilding storage ahead of winter 2025.
Wind generation was also down, due to lower than average wind, and maintenance outages led to lower geothermal generation.
Operating expenses were $16 million higher than the prior period, as the company invested in generation maintenance.
"Mercury and others in the sector are firmly focussed on security of supply as the number one priority that will drive further traction on the energy transition," St John said.
"In addition to actions the sector is taking, we believe it should be a key focus of regulatory processes currently underway."
Mercury maintained full-year underlying profit guidance of $820m.
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