Mighty River Power's share of
electricity sales has dropped compared to a year ago and
prices it's getting for power have tumbled. The company's
shares hit a new low in early trading today.
Operating figures show its share of electricity sales around
the country dropped 2 per cent to 18 per cent in the six
months to December 31 compared to same period a year earlier.
In the three months to December 31 Mighty River's average
sales price to residential and commercial customer was
$111.17/MWh - up just 0.6 per cent - compared with
$110.52/MWh in the previous corresponding period. It has
committed not to raise prices to residential customers until
at least April 1, next year.
And while MRP says it is outperforming its competitors, the
average price achieved for its generation has fell from
$66.25/MWh at the end of 2012 to $47.67/MWh in the final
quarter of last year.
Nearly half the company was floated on the NZX last May in
part of the government's partial sale of energy companies.
Shares were sold to the public for $2.50 and spiked soon
after listing to $2.73 before steadily declining. They were
trading at $1.95 this morning..
Operating figures show for the quarter ended December 31 show
customer sales volumes were down 9 per cent in the quarter as
the company continued to reduce sales volumes in the
low-price, low-margin commercial market.
The company said that in the residential market, seasonal
demand was 5 per cent lower on a per customer basis primarily
due to high seasonal temperatures.
The average temperature in the quarter was 16.7C, compared to
the 15-year average of 16.1C.
South Island customer numbers are down 14 per cent to 37,000
as a result of the company temporarily reducing acquisition
and retention activity over the past year in the south due to
the market risks before the final commissioning of
Transpower's upgraded inter-island link.
Mighty River has also built up storage in Lake Taupo
following the drought at the beginning of last year.
Lake Taupo storage was up 26 per cent over the quarter from
338GWh at September 30 to 426GWh which is 97 per cent of
Total generation was down 5 per cent on the last quarter of
the 2012 calender year, largely as a result of hydro
generation falling 15 per cent as MRP built up lake levels at
The lower hydro generation volume was partially offset by
higher geothermal production with the additional output from
the new Ngatamariki plant near Taupo, completed in September
last year, and increased fuel availability at Kawerau with a
new larger consent secured for fuel.
Generation at the Nga Awa Purua geothermal station was lower
because of equipment problems, and the station currently has
a reduced operating capacity (down about 10MW) until the
first half of the 2016 financial year when the turbine is
scheduled to be repaired and restored to full capacity.
Geothermal production for the quarter was 39 per cent of
total generation, versus 31 per cent in the previous period.
Mighty River Power will release its results for the six
months ending December 31 at the end of February.
- By Grant Bradley of
the NZ Herald