Mercury NZ Limited (ASX:MCY) Reports Q2 Performance and New Wind Farm Commitment
Quarterly Performance Overview
Mercury NZ Limited (ASX:MCY) reported a decline in spot electricity prices averaging $44/MWh in Auckland during Q2. This drop was attributed to a 2.1% reduction in national demand compared to the previous corresponding period (PCP). Adjusting for industrial demand responses, demand experienced a slight increase of 0.7% versus the PCP.
Hydro Generation and Resource Management
Hydro generation levels decreased to 872 GWh, representing a 6% decline compared to PCP, due to low inflows from the Lower Waikato catchment. However, strategic portfolio management allowed Mercury to maintain a strong starting lake level for Q3. Additionally, wind generation was down 8% to 44 GWh, falling short due to below-average wind conditions. Planned maintenance at geothermal stations resulted in a reduction of 55 GWh in geothermal generation.
Growth in Customer Connections
Mercury’s commitment to customer engagement led to an increase of 25,000 telco and mobile connections relative to the PCP. This marks a 6,000 increase compared to the previous quarter thanks to cross-sell initiatives and attractive customer offers.
Investment in Renewable Energy
Mercury announced a significant new investment with the construction of the Kaiwaikawe wind farm in Northland, valued at $287 million. Once operational, the 77 MW facility is expected to generate 221 GWh per annum by late CY26, bringing Mercury’s two-year commitment to new renewables to over $1 billion.
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