Ngā Tamariki Geothermal Station.
Photo: Supplied / Mercury Energy
Renewable energy generator and retailer Mercury has reported a strong return to profit, reflecting ongoing cost savings as well as investment in renewable energy projects.
Mercury chief executive Stew Hamilton said the company had invested 50 percent ($270 million) of the first half earnings in renewable energy and was on track to meet its full year underlying profit guidance of $1 billion, as well as operating costs of $370m – down 6.6 percent on the last year.
Key numbers for the six months ended December compared with a year ago:
- Net profit $20m vs $67m loss
- Revenue $1.66b vs $1.76m
- Underlying profit $537m vs $418m up
- Operating expenses $183m vs $207m
- Interim dividend 10 cents per share vs 9.6 cps up 4%
[h Results overview
Hamilton said all three of Mercury’s large renewable developments, totalling $1b investment, were progressing on budget and on time.
He said the Ngā Tamariki Geothermal Station unit came online in January 2026, while stage two of Kaiwera Downs Wind Farm and Kaiwaikawe Wind Farm were both due to begin generating this year.
“Our disciplined strategic execution is delivering a strong performance today, while enabling us to invest significantly in new renewable generation for New Zealand, helping meet future demand growth and build resilience,” he said.
“We are on track to deliver on our plan of adding 3.5 terrawatt hours (TWh) of new generation by 2030.”
That was the equivalent of powering an additional 430,000 homes.
“Our contributions are supporting the fastest rate of renewable generation development in history, helping power economic growth over the next two decades,” Hamilton said.
“We are also investing significantly in our existing assets, with Karāpiro Hydro Station upgrade complete and plans to invest $590m in hydro refurbishment over the next decade.
“Enabling our customers to shift consumption and lower their costs is another key focus and we continue to provide additional support to our customers in need.
“We are facing into energy system challenges with confidence, including actively shaping and contributing to solutions for gas and firming, while helping deliver a bright future for New Zealand powered by an increasingly renewable energy supply.”
Outlook
“Our balance sheet remains strong, with capital headroom and prudent risk settings,” Hamilton said.
He said the full year underlying profit guidance of $1b was supported by above average hydro generation and lower operating costs, while the full year dividend guidance of 25 cps remained on track.
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