Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
  1. Homepage
  2. Equities
  3. New Zealand
  4. New Zealand Stock Exchange
  5. Mercury NZ Limited
  6. News
  7. Summary
    MCY   NZMRPE0001S2

MERCURY NZ LIMITED

(MCY)
  Report
SummaryChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsOther languagesPress ReleasesOfficial PublicationsSector news

Mercury NZ : Quarterly Operational Update FY21 Q4

07/19/2021 | 06:10pm EDT

QUARTERLY OPERATIONAL UPDATE

Three months ended 30 June 2021

>> QUARTERLY HIGHLIGHTS

GENERATION

SPOT PRICES

HEDGE

VOLUMES

PURCHASES

ELEVATED

FALL

LIFT

PHYSICAL GENERATION DOWN

ELEVATED Q4 SPOT PRICES REFLECT

CFD PURCHASES INCREASE BY 315GWh

85GWh IN THE QUARTER,

SHORT-TERM FUEL CONSTRAINTS,

VERSUS PCP AS MERCURY

126GWh ACROSS THE FULL-YEAR

FUTURES PRICES EASING

MITIGATES PRICE RISK

>> COMMENTARY

HYDRO GENERATION DOWN AS LOW INFLOWS PERSIST; GEOTHERMAL GENERATION IMPACTED BY KAWERAU OUTAGE

Mercury's hydro generation in FY2021-Q4 of 727GWh (193GWh below average1) equalled the prior comparable period for the lowest level of hydro generation in company history. This was due to sustained dry hydrology that saw Waikato catchment inflows at the 13th percentile2 for the quarter and at the 16th percentile3 for FY2021. Consequently, hydro storage in Lake Taupo ended the year at 143GWh below average2.

Geothermal generation decreased from 675GWh in FY2020-Q4 to 590GWh in the most recent quarter due to an unplanned outage at the Kawerau power station that started on 7 June. The station is currently expected to return to service this week.

ELEVATED PRICES REFLECT CURRENT FUEL CONSTRAINTS WITH FUTURES EASING

Average spot prices in the quarter reflected low national hydro storage and continued gas deliverability issues, increasing to $277/MWh at Otahuhu and $261/MWh at Benmore from $115/MWh and $102/MWh respectively in FY2020-Q4. Elevated prices were also seen in Mercury's CFD purchases for FY2021-Q4 which increased by 315GWh, from 464GWh in FY2020-Q4 to 779GWh, to mitigate price risk from decreased physical generation.

Futures prices eased during the quarter due to a lift in national hydrology towards the end of June. FY2022 futures prices d ecreased from $193/MWh and $177/MWh at Otahuhu and Benmore at the start of the quarter to $170/MWh and $151/MWh respectively by the end of the quarter, with a subsequent further reduction to $144/MWh and $122/MWh as at 16 July 2021.

COMMERCIAL & INDUSTRIAL SALES LIFT AS MERCURY POSITIONS PORTFOLIO

Notwithstanding elevated spot prices, Mercury continued to engage with customers seeking to re -contract resulting in Commercial & Industrial segment sales (including both physical and financial) increasing by 227GWh, from 731GWh in FY2020-Q4 to 958GWh in FY2021- Q4. The Commercial & Industrial sales yield increased by 9.1% from $93/MWh in FY2020-Q4 to $102/MWh in FY2021-Q4.

Customer numbers continued to decrease, dropping by 3,000 across the quarter to 328,000. This was reflected in Mass Market s ales volumes which decreased by 63GWh to 672GWh versus 735GWh in the same quarter last year.

DEMAND IN Q4 LIFTS VERSUS COVID-19 LOCKDOWN AFFECTED PCP; DEMAND IN QUARTERS 1 -3 DECREASES

Temperature-adjusted demand in FY2021-Q4 increased by 5.8% as the prior comparable period was affected by the COVID-19 Level 4 lockdown. Increases were seen across all sectors, with contributions from each sector being: urban (+2.5%), rural (+1.0), in dustrial (+1.2%), dairy (+0.8%) and irrigation (+0.3%).

The recovery in Q4 drove full-yeartemperature-adjusted demand up by 1.0%. Excluding this period, demand in the first three quarters in FY2021 decreased by -0.6% versus the same quarters in FY2020, largely driven by reduced industrial demand due to production cuts at the Tiwai Point aluminium smelter, Norske Skog's Kawerau mill and the Marsden Point refinery.

  1. For quarters ended 30 June since 1999
  2. For quarters ended 30 June since 1927
  3. For 12-month periods ended 30 June since 1927

MERCURY NZ LIMITED QUARTERLY OPERATIONAL UPDATE

01

>> OPERATING STATISTICS

OPERATING INFORMATION

Three months ended

Three months ended

Twelve months ended

Twelve months ended

30 June 2021

30 June 2020

30 June 2021

30 June 2020

ELECTRICITY CUSTOMERS

328

348

('000s ICPs)

North Island Customers

291

307

South Island Customers

37

41

Dual Fuel Customers

45

47

VWAP 1

Volume

VWAP 1

Volume

VWAP 1

Volume

VWAP 1

Volume

($/MWh)

(GWh)

($/MWh)

(GWh)

($/MWh)

(GWh)

($/MWh)

(GWh)

ELECTRICITY SALES

Physical

129.27

1,205

124.20

1,108

123.77

4,522

118.45

4,361

Mass Market

2

142.10

672

136.45

735

139.70

2,654

130.84

2,892

Commercial & Industrial

3

113.09

533

100.05

373

101.15

1,868

94.05

1,469

Network Losses

56

54

213

213

Physical Purchases

287.92

1,262

128.97

1,163

193.56

4,735

115.14

4,573

4

Financial

98.15

846

86.00

807

91.75

3,432

83.63

3,377

5

End User CfDs

87.10

425

85.79

358

86.96

1,559

82.15

1,323

Other Sell CfDs

6

109.30

421

86.16

449

95.74

1,873

84.59

2,054

Spot Settlement of CfDs

269.63

109.24

175.21

101.15

Spot Customer Purchases

277.51

31

117.16

183

176.38

166

104.12

747

ELECTRICITY GENERATION

Physical

282.02

1,317

121.59

1,402

180.04

6,205

109.51

6,331

Hydro

295.88

727

134.90

727

186.94

3,611

117.03

3,712

Geothermal (consolidated)

7

264.93

590

107.42

675

170.44

2,594

98.91

2,619

Financial

210.08

779

84.28

464

139.05

1968

83.69

1,478

Buy CfDs

6

210.08

779

84.28

464

139.05

1968

83.69

1,478

Spot Settlement of CfDs

266.79

113.97

193.13

98.81

PORTFOLIO LWAP/GWAP

8

1.02

1.01

1.01

1.02

  1. VWAP is volume weighted average energy-only price sold to customers after lines, metering and fees
  2. Mass market includes residential segments and non time-of-use commercial customers
  3. Fixed-price,variable-volume (FPVV) sales to time-of-use commercial customers
  4. Excludes spot customer purchases
  5. Excludes FTR and trading ASX positions (including positions held to maturity which were previously disclosed in CfD volumes)
  6. Includes Virtual Asset Swap volumes of 149 GWh for the 3 months ended 30 June 2021 and 149 GWh for the 3 months ended 30 June 2020 and of 599 GWh for the 12 months ended 30 June 2021 and 601 GWh for the 12 months ended 30 June 2020
  7. Includes Mercury's 65% share of Nga Awa Purua generation
  8. Includes all physical and financial buys and sells except spot customer purchases

MERCURY NZ LIMITED QUARTERLY OPERATIONAL UPDATE

02

    • MARKET DATA
  • ELECTRICITY GENERATION BY COMPANY FOR THE THREE MONTHS ENDED 30 JUNE

MERCURY

Financial Year Q4 2021

Financial Year Q4 2020

MERIDIAN ENERGY

CONTACT ENERGY

GENESIS ENERGY

TRUSTPOWER / TILT

8%

13%

7%

OTHER

15%

4%

4%

18%

23%

29%

35%

21%

23%

Source: Electricity Authority

> SHARE OF ELECTRICITY SALES (GWh) FOR THE THREE MONTHS ENDED 30 JUNE (EXCLUDING CFDs)

MERCURY

Financial Year Q4 2021

Financial Year Q4 2020

OTHER

13%

14%

87%

86%

Source: Mercury Purchases and Transpower SCADA

MERCURY NZ LIMITED QUARTERLY OPERATIONAL UPDATE

03

> OTAHUHU WHOLESALE PRICE AND NATIONAL HYDRO STORAGE LEVELS

AVERAGE NATIONAL STORAGE

FY2020 NATIONAL STORAGE

FY2021 NATIONAL STORAGE

ROLLING 12 MONTH AVERAGE OTA PRICE

ROLLING 12 MONTH AVERAGE BEN PRICE

6,000

$200

5,000

$180

$160

4,000

$140

GWh

3,000

$120

$/MWh

2,000

$100

$80

1,000

$60

0

$40

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Source: NZX Hydro and NZEM Pricing Manager (NZX)

> TAUPO STORAGE

AVERAGE SINCE 1999

FY2020

FY2021

600

500

400

GWh

300

200

100

0

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Source: NZX Hydro

MERCURY NZ LIMITED QUARTERLY OPERATIONAL UPDATE

04

> OTAHUHU ASX FUTURES SETTLEMENT PRICE

$250

AS AT 30 JUNE 2020

AS AT 31 DECEMBER 2020

AS AT 31 MARCH 2021

$187.52

$184.24

$193.18

$170.44

$200

$/MWh

$150

$114.01

$135.59

$95.65

$119.06

$100

$50

$0

FY21

FY22

Source: ASX

Financial Year

> BENMORE ASX FUTURES SETTLEMENT PRICE

AS AT 30 JUNE 2020

AS AT 31 DECEMBER 2020

AS AT 31 MARCH 2021

$160

$174.84

$173.13

$177.01

$151.34

$200

$180

$/MWh

$140

$104.40

$120.57

$79.83

$100.69

$120

$100

$80

$60

$40

$20

$0

FY21

FY22

Financial Year

Source: ASX

AS AT 30 JUNE 2021

$143.18

$144.05

$92.56

$103.11

FY23

AS AT 30 JUNE 2021

$125.69

$124.13

$75.74

$82.16

FY23

MERCURY NZ LIMITED QUARTERLY OPERATIONAL UPDATE

05

Disclaimer

Mercury NZ Limited published this content on 19 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 July 2021 22:09:06 UTC.


ę Publicnow 2021
All news about MERCURY NZ LIMITED
09/27MERCURY NZ : Commerce Commission grants clearance for Mercury to acquire Trustpower's reta..
PU
08/16Australia shares dip on weak corporate earnings, COVID-19 jitters
RE
08/16Mercury NZ Limited Announces MCY - ORDINARY FULLY PAID FOREIGN EXEMPT NZX Dividend for ..
CI
08/16Mercury NZ Limited Approves Fully Imputed Final Dividend, Payable on 30 September 2021
CI
08/16Mercury Says Wind-Power Investments to Boost Earnings
DJ
08/03MERCURY NZ : acquires Tilt Renewables' New Zealand operations
PU
08/03MERCURY NZ : Completes Acquisition of Tilt Renewables' New Zealand Wind Farms
MT
08/03Mercury NZ Limited completed the acquisition of New Zealand business of Tilt Renewables..
CI
08/02MERCURY NZ : First power produced at Turitea Wind Farm
PU
07/23TILT RENEWABLES : Receives Final Court Approval for Scheme of Arrangement
MT
More news
Financials
Sales 2022 1 990 M 1 398 M 1 398 M
Net income 2022 173 M 121 M 121 M
Net Debt 2022 1 756 M 1 233 M 1 233 M
P/E ratio 2022 52,0x
Yield 2022 3,13%
Capitalization 8 705 M 6 104 M 6 114 M
EV / Sales 2022 5,26x
EV / Sales 2023 5,18x
Nbr of Employees 752
Free-Float 42,1%
Chart MERCURY NZ LIMITED
Duration : Period :
Mercury NZ Limited Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends MERCURY NZ LIMITED
Short TermMid-TermLong Term
TrendsBearishNeutralNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 5
Last Close Price 6,39 NZD
Average target price 6,40 NZD
Spread / Average Target 0,16%
EPS Revisions
Managers and Directors
Vincent James Hawksworth Chief Executive Officer
William Thomas Meek Chief Financial Officer
Prudence Mary Flacks Chairman
Patrick Clifford Strange Independent Non-Executive Director
Keith Raymond Smith Independent Non-Executive Director