Mighty River Power : Quarterly Operational Update for the Three Months ended 31 December 2015

20 January 2016

Mighty River Power Quarterly Operational Update
Three months ended 31 December 2015
Quarterly Highlights

• 98% geothermal availability led to the highest geothermal generation for a quarter in the Company's history
• 10% increase in hydro generation despite weak inflows
• 2% increase in LWAP/GWAP reflecting a reduction in relative hydro yields due to muted wholesale price volatility

GEOTHERMAL AND HYDRO GENERATION UP; WHOLESALE PRICES DOWN

The quarter to 31 December 2015 reflected strong geothermal performance as Mighty River Power had its highest-ever quarter of geothermal generation, up 12% on the prior comparable period (pcp), to 728GWh. This high geothermal generation reflected 98% availability of the Company's geothermal plants during the quarter.

The period also saw a 10% lift in hydro generation, up 81GWh on pcp to 907GWh. The wet winter turned into a dry spring in the catchment with quarterly inflows being the seventh lowest based on history since 1927. The quarter ended with storage in Lake Taupo of 387GWh, 67% full and 89% of average.

National hydro storage was above average for most of the quarter, leading to lower wholesale electricity prices. The price the Company received for generation was down 13% on pcp to $67.91/MWh. Relative hydro yields (GWAP) also fell versus pcp contributing to an increase in LWAP/GWAP by 2% to 1.03. This was due to a flatter generation profile in response to lower wholesale price volatility.

There was a significant decrease in thermal generation for the period as the Company prepared its Southdown station for closure on 31 December 2015. Mighty River Power's electricity generation is now 100% renewable.

NATIONAL DEMAND GROWTH CONTINUES - RECORD FOR Q2; ASX PRICES LIFT

National demand for electricity rose to the highest level for Q2 on record, up 0.9% compared with the same period last year (adjusted for temperature). This is the sixth consecutive quarter where demand has increased on pcp, with a reduction in demand from urban centres being more than off-set by increases across dairy, irrigation, industrial and rural centres.

Throughout the quarter, ASX futures prices increased for each year from FY16 to FY18. This continuation of an upward trend increases the attractiveness of commercial yields, which tend to track the ASX futures.

ENERGY PRICES DOWN 1.5%; VOLUMES DOWN 7%

A reduction in overall customer sales volumes reflects the highly competitive market across both residential and commercial. The average electricity price to customers was $110.94/MWh, lower than pcp. This was due to additional discounted offers to customers and Mighty River Power absorbing increases in lines and transmission costs for its customers on fixed-price contracts.

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

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