Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Mighty River Power: Quarterly Operational Update

Quarterly Operational Update
Three months ended 30 June 2014

CUSTOMER ENERGY PRICE DOWN IN LINE WITH FORECAST

Mighty River Power’s average energy price for sales to customers in the quarter to 30 June 2014 was down 4% on the prior comparable period (pcp), reflecting the highly competitive retail electricity market.

The average energy price achieved for sales in the quarter was down $4.59/MWh to $122.17/MWh. The lower pricing was driven by competition in both the commercial and residential segments. The Company commitment to not increase headline residential energy prices, the introduction of Mercury Energy’s additional 2% Prompt Payment Discount, and the effect of absorbing increases in local lines and transmission charges in fixed-price customer contracts contributed to this decline in energy prices. The energy price of $117.70 for the 12 months to 30 June represents an increase of 0.4% over the past year, and was in line with Mighty River Power’s IPO forecast for the period of $118/MWh.

GEOTHERMAL AND HYDRO PUSH GENERATION UP 10%

A partial recovery of hydro conditions in the quarter saw hydro production up 78GWh (11%) on pcp and Lake Taupo storage up 82GWh over the quarter. The lake level at 30 June was 65% of long run average (91GWh below average) and currently sits at 83% of long run average (as at 22 July).

Geothermal was up 135GWh (25%) on pcp due to additional production from the Ngatamariki station (which was commissioned in September 2013) and increased fuel availability lifting Kawerau output. Nga Awa Purua production remained stable at the level expected until the rotor replacement (scheduled towards late CY2015). Less than expected fuel availability at Ngatamariki has led the Company to bring forward drilling on a new production well which is currently underway. We expect Ngatamariki to be back from its 72MW output currently to 82MW by the end of calendar year 2014.

The utilisation of gas-fired generation from the Southdown station was well down on previous periods with just 31GWh in the quarter and a record low generation of 125GWh for the year ending 30 June. The Company is reviewing the role of Southdown and options for the future of the plant.

REDUCED COMMERCIAL SALES COMMITMENTS, IMPROVING OUTCOMES IN WHOLESALE

Commercial volumes (from Fixed Price Variable Volume contracts and CFD contracts) fell on pcp as the Company actively managed its sales book, to gain additional flexibility with hydro generation rather than using this generation capacity to hedge low fixed-priced commercial sales. Residential electricity sales volumes were also slightly lower due to warmer weather and reduced acquisition and retention activity in the South Island. The average price for generation during the quarter was $71.67MWh, outperforming the market average and other large generators. The relative price paid for purchases compared to the wholesale price the Company received for its generation (LWAP/GWAP), was flat on pcp despite the additional base-load geothermal generation. The 12 month ratio (LWAP/GWAP) was below unity for the first time in four years.

Mighty River Power will release its financial results for the 12 months ended 30 June 2014 on 20 August 2014.

Click here for the full report.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news