Ann: ASSET: MRP: MRP to exit geothermal investments in Chile and Germany

• Release Date: 16/12/14 08:30
• Summary: ASSET: MRP: MRP to exit geothermal investments in Chile and Germany
• Price Sensitive: No
• Download Document  2.41KB

					MRP
16/12/2014 08:30
ASSET
NOT PRICE SENSITIVE
REL: 0830 HRS Mighty River Power Limited (NS)

ASSET: MRP: MRP to exit geothermal investments in Chile and Germany

Mighty River Power today announced that the Company will exit its geothermal
development interests in Chile and Germany, while keeping its stake in
operating US interests.

The Company announced earlier this year that it was undertaking a review of
international geothermal investments as part of a broader strategic planning
process.

Chief Executive, Fraser Whineray, said the international geothermal
development options in all three countries have positive characteristics, but
were now not in line with the Company's investment objectives.

"We will be commencing a sale process for the assets in Chile and Germany. In
the US, where we have an interest in a 50MW operating plant and a minority
stake in a geothermal development company, no further development capital
will be committed."

Mr Whineray said the decision would not affect Mighty River Power's FY2015
dividend guidance of 14 cents per share. The Company is currently assessing
the accounting implications.

"We are very clear about Mighty River Power's strategy and direction that we
outlined to our shareholders last month - the current strategic focus is on
incremental consumer-focused growth options, including smart meter deployment
and data services."

Mr Whineray said: "Geothermal remains a core capability for Mighty River
Power and indeed New Zealand. We look forward to pursuing future geothermal
development options in New Zealand when commercial conditions are right for
investment, as well as opportunities to leverage our expertise
internationally without significant capital investment."

Mighty River Power currently operates more than half of the total geothermal
generation in this country, having completed three major geothermal projects
domestically since 2008. These stations - Kawerau, Nga Awa Purua and
Ngatamariki - have helped boost New Zealand's geothermal output from 6.5% of
the country's electricity supply to a record 16.3% (6,565 GWh) for the 12
months to 31 October 2014. Geothermal is now New Zealand's second-largest
source of electricity production, after hydro generation.

For further information contact David Glendining, Head of Communications (Tel
0272 105 337) or Anna Hirst, Head of Investor Relations (Tel 0275 173 470)
End CA:00258934 For:MRP    Type:ASSET      Time:2014-12-16 08:30:06