STOCK EXCHANGE LISTINGS: NZX (MCY) / ASX (MCY)
NEWS RELEASE
Results reflect record generation and significant business growth FY23 Financial Results Summary FY2023
FY2022
Change %
NET PROFIT AFTER TAX ($M)
103
469
-78%
EBITDAF ($M)
841
581
45%
STAY-IN-BUSINESS CAPITAL EXPENDITURE ($M)
119
68
75%
ELECTRICITY GENERATION (GWh) FINAL FULLY IMPUTED ORDINARY DIVIDEND (CENTS PER SHARE)
9,038
7,499
21%
13.1
12.0
9%
TOTAL ORDINARY DIVIDEND (CENTS PER SHARE), FULLY IMPUTED
21.8
20.0
9%
21 August 2023 – Significant investments to increase the scale of our business and record generation has delivered results for Mercury in 2023. “This year we realise the full benefits of large-scale investments made over the past two years to grow our renewable generation and customer business,” said Mercury Chief Executive, Vince Hawksworth. Annual generation exceeded 9 TWh up 21% from 2022 levels. Record inflows into the hydro catchment underpinned strong hydro generation at 5,209 GWh, 28% higher than average. More than 1,000 GWh was spilled during the year to maintain lakes within consented operating limits. Wind generation increased 16% to 1,471 GWh following the Turitea South wind farm becoming fully operational. Mercury’s scaled retail business also contributed to this result. Mercury is New Zealand’s largest electricity retailer by customer market share, with 860,000 customer connections following the Trustpower retail and NOW NZ acquisitions in 2022. Mercury’s net profit after tax was $103 million, down $366 million on the previous year, with the previous year’s results including the gain made on the sale of our Tilt Renewables shareholding. Mercury reported $841 million operating earnings (EBITDAF), up $260 million on the prior year’s $581 million EBITDAF. Operational expenditure was $346 million, up $116 million on the prior year, while total stay-in-business capital expenditure was $119 million (up $51 million on the prior year). During the year there was record-breaking rainfall in many parts of New Zealand, including the Waikato catchment. This is reflected in today’s result, as signalled in previous updates to the market. “We know that for some the rainfall events had devastating impacts, and we provided financial assistance and on-the-ground help for our most severely impacted customers during the year in recognition of this. We also elected to delay the implementation of customer price changes to these affected areas,” said Mr Hawksworth. Results have been partially offset by lower annual geothermal generation due to outages and lower electricity spot prices, however the turnaround at Kawerau geothermal station to install a new turbine and generator was completed successfully. Supporting customers in need Mercury Chair, Prue Flacks, said the company remained highly attuned to its role supporting New Zealanders through the transition to a low-carbon economy and more immediate economic challenges. “We acknowledge this is a challenging time for many, with the rising cost of living impacting many households. As a major electricity retailer, we have a role to play in supporting customers and we take that responsibility seriously,” said Ms Flacks. Actions to strengthen customer care this year included collaborating on joint research into hidden hardship with Genesis Energy and working on potential solutions with community groups. A two-year Winter Energy Study in partnership with Kāinga Ora Homes and Communities to trial how capped bills benefit customers over winter was also launched.