Electricity company Mercury has posted record operating earnings as hydro generation improved and expenses fell.

The company's bottom line profit also rebounded strongly after last year's results were affected by one-offs.

Key numbers for the 12 months ended June compared with a year ago:

  • Net profit after tax $321m v $1m
  • Revenue $3.22b v $3.5b
  • Operating earnings (EBITDAF) $1.07b v $786m
  • Operating expenses $370m v $396m
  • Generation 9070 GWh v 7906 GWh
  • Final dividend 17 cents per share v 14.4 cps

Operating earnings (the preferred earnings measure) rose 36 percent to a record $1.07 billion, the first time Mercury has exceeded the $1b mark, and came in above guidance.

Alongside strong hydro generation, three new projects began generating power during the year. The new assets were a mix of geothermal expansion and new wind farms.

Mercury said strong inflows into the Waikato catchment lifted hydro generation 31 percent from a year earlier.

The company said it reinvested 66 percent of its 2026 financial year operating earnings in new and existing renewable generation assets.

"We are converting strong financial performance into new generation, greater system resilience and the capacity to support New Zealand's future economic growth," chief executive Stew Hamilton said.

The company said its next development would be Puke Kapo Hau wind farm, west of Dunedin. The project would support South Island demand, including from Datagrid NZ, a company planning to build a massive data centre in Southland.

 

Mercury recently announced a $53 million investment in Datagrid NZ.

"Datagrid shows how long-term demand, renewable development and disciplined investment can work together," Hamilton said.

Mercury said operating earnings for the year ending June 2027 would likely be at $1.075b.