20 October 2015

Mighty River Power Quarterly Operational Update

Three months ended 30 September 2015


Quarterly Highlights

· Hydro generation up 41% due to high inflows during the quarter

· Electricity demand up 1.9%, the fifth consecutive quarter where demand has increased on pcp

· Wholesale prices decreased by 19% due to above average national hydro storage


TOTAL GENERATION UP 17%; WHOLESALE PRICES DOWN

Mighty River Power's operating statistics for the quarter to 30 September 2015 show a lift in total generation of 17%, up 308GWh on pcp to 2,099GWh. During this time the Company's hydro generation was up 379GWh (1,308GWh in total), an increase of 41% compared with the same period last year due to high inflows into the Waikato catchment that were 111% of average. The quarter ended with storage in Lake Taupo of 451GWh, 78% full and 131% of average. National hydro storage was also above average for the period, leading to lower wholesale electricity pricing, which meant the price the Company received for generation was down 19% on pcp to $55.07/MWh. Relative hydro yields fell versus the pcp due to a flatter generation profile with higher volumes and lower wholesale price volatility.

Geothermal generation was down slightly on pcp due to the 21-day shut at Nga Awa Purua to replace the turbine. The plant had been running at about 10MW below capacity since December 2013.

NATIONAL DEMAND GROWTH CONTINUES; ASX PRICES LIFT
National demand for electricity increased 1.9% compared with the same period last year (0.9% when adjusting for lower temperatures), which was mainly attributable to higher electricity usage in urban centres (commercial and residential) and for milk production. This is the fifth consecutive quarter of demand growth on pcp.
ASX futures prices were up slightly for FY2016 - FY2018 over the quarter. 2019 calendar year futures were listed for the first time in October. FY2019 Otahuhu futures are currently trading at $3.25/MWh above the FY2018 price.

ENERGY PRICES DOWN 1.5%; VOLUMES DOWN 6%
The average electricity sales price to residential and commercial customers was $119.24/MWh, down 1.5% on pcp. This was in part due to Mighty River Power absorbing increases in lines and transmission costs for the third of its customers on fixed-price contracts.
While residential sales volumes increased on pcp, overall customer sales volumes were down 6% as the Company continued to reduce sales volumes in the low price, low margin commercial market (down 17%). A reduction in customer numbers also reflects the highly-competitive commercial market and the Company's declining commercial book where contracts had historically higher yields.

Mighty River Power will release its financial results for the 6 months ended 31 December 2015 on 23 February 2016.

Download PDF
Download 7 year history of operating statistics

distributed by