Mighty River produces good numbers

Mighty River Power continues to produce impressive statistics as it readies itself for a partial float on the NZX this year, subject to a final Supreme Court judgement.

The Government plans the partial sale of Mighty River Power, Genesis Energy and Meridian, possibly all this year, subject to a final appeal to the Supreme Court by the Maori Council.

The Green Party is also in the final stages of collecting enough signatures to force a citizens-initiated referendum seeking to stop the sales. Prime Minister John Key has ruled out abiding by the referendum, as it is not binding on the Government.

Mighty River Power's operational update for the three months to December says the company achieved market share gains in both electricity sales to customers and generation volumes in the quarter.

Total sales to customers increased by 12% on the previous corresponding period (pcp), with volumes increasing from 1132GWh to 1272GWh.

The company also had increases in sales volumes to both residential and businesses customers compared with the pcp. The majority of the gain came from a 22% increase in volumes to business customers.

The price of sales to customers remained consistent with the pcp at $110.53 a MWh, Mighty River Power said.

Total electricity purchase costs fell 27% - from $83.20 a MWh to $61.14 MWh, reflecting lower wholesale prices and the increased capacity following Transpower's commissioning of the North Island grid upgrade project at the end of October.

Total generation increased by 6% compared with the pcp. Hydro generation was up 13%, reflecting effective use of hydro storage which had received the benefits from high inflows in the previous quarter.

Generation at the company's gas-fired power station in Auckland was down 48% as Mighty River Power responded to lower wholesale prices in the market.

Wholesale market pricing fell in the quarter as the result of high national inflows into Mighty River Power's competitor's South Island catchments. That affected the average price the company received for its total generational sales which fell by 19% on the pcp.

However, the price received during the quarter outperformed the market, supported by the company's flexible portfolio, particularly the ability to utilise storage and flexible plant to respond to wholesale market prices, the company said.


Mighty River Power

Highlights of the quarter were:

• Electricity sales to customers rose 12%

• Overall generation volumes were up 6%

• Flexible generation let MRP achieve average generation price of $62.25 a MWh.



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