Mercury, formerly known as Mighty River Power, reported an operating profit of $493million for the year ended June, up 2.3% from the $482million reported in the previous corresponding period.
More than 90,000 Mercury shareholders, including the Crown, would receive a final tax-paid ordinary dividend of 8.6 cents per share, taking the full-year dividend to 14.3cps, in line with guidance.
Chairwoman Joan Withers said the unimputed special dividend of 4cps reflected the proceeds from non-core land sales and the current limited requirement for growth capital.
Both dividends were payable on September 30.
Craigs Investment Partners broker Peter McIntyre said the Government might have received more if it had retained full ownership.
''Some people feel positive about the Government holding 51% and others feel negative. But the sell-down does provide a lot of depth in the equity market and thousands of New Zealand investors also get the dividend.''
Mrs Withers said the level of distribution represented both 100% of free cash flow and the proceeds from land sales completed during the past two years, continuing a strong focus on active capital management.
''We are pleased to be returning $252 million for the full year, underscoring the strength of our company in a period of significant change and progress for the business, including our rebranding to Mercury at the end of July.''
It was Mercury's intention to continue to fully impute ordinary dividends, she said.
Mercury reported a profit after tax of $160million, up from $47 million last year. The large rise was due to write-downs in the previous period.
Chief executive Fraser Whineray said the overall picture of the New Zealand electricity market remained healthy, with steady demand growth during the past two years, a well-balanced market and significant thermal generation retired in 2015.
Mercury closed its Southdown station, in Auckland, meaning the company's electricity was now 100% renewable.
Mercury's hydro generation was below average due to low inflows but operating earnings for the year were up $11million. Geothermal generation was up 2% to a record 2830GWh and hydro was up 16% to 3866GWh.
Reduced volatility in the wholesale market led to subdued average pricing with a greater effect on generation prices relative to electricity costs, he said.
Mrs Withers said the aim for Mercury was to communicate expected business outcomes more clearly to investors.
Operating earnings guidance updates would be provided at least twice-yearly at the annual meeting and interim results. Quarterly operational updates would include mid-point estimates for full-year hydro generation.
Operating earnings guidance for the year ended June 3016 was $490million, subject to any material events, significant one-off expenses or other foreseeable circumstances including hydrological conditions.
Ordinary dividend guidance had been issued at 14.6cps.
Three other companies majority owned by the Government report this week. They are: Genesis Energy and Meridian, due today; Air New Zealand will report on Friday.
