Mighty River Power reports higher earnings on geothermal power
Nga Awa Purua geothermal power plant, New Zealand (source: Mighty River Power)
Alexander Richter
31 Aug 2011
New Zealand state-owned energy utility Mighty River Power reports increased earnings primarily due to a full year's operation from its Nga Awa Purua geothermal power plant.
New Zealand state-owned electricity generator and retailer Mighty River Power Ltd reports increased underlying earnings of 16% to $162.2 million in the year to June 30, thanks primarily to a full year’s operations from the Nga Awa Purua geothermal power station.
Total electricity produced by MRP was up 17% to 6,833 Gigawatt hours, driven largely by the 140 Megawatt Nga Awa Purua station, but assisted also by higher than average hydro generation, which meant 96% of MRP’s energy came from renewable sources in the last financial year.
Earnings before interest, tax, depreciation, amortisation and changes in the fair value of financial instruments was in the middle of the company’s earnings guidance range, at $443.1 million, 35% increase on $327.8 million the year before.
Net profit after tax was up 50% to $127.1 million, partly because impairments in the last financial year at $19.8 million were well down on the previous year’s $31.4 million, but also distorted by volatility in the book value of electricity hedge contracts. These tend to distort NPAT for all electricity companies, as they all have significant hedge portfolios.
In the meantime, MRP was moving ahead with its $446 million investment in another geothermal power station, Nga Tamariki. While electricity demand had stalled in the last four years, the new plant was expected to displace older, more expensive sources such as the Huntly gas and coal-fired power station, and was built with a 30 year investment horizon.”
Source: TVNZ
