Ann: HALFYR: MRP: Interim Results for period ende

• Release Date: 26/02/14 10:30
• Summary: HALFYR: MRP: Interim Results for period ended 31 December 2013
• Price Sensitive: No
• Download Document  3.49KB

					MRP
26/02/2014 08:30
HALFYR

REL: 0830 HRS Mighty River Power Limited (NS)

HALFYR: MRP: Interim Results for period ended 31 December 2013

Mighty River Power today released financial results for the six months ended
31 December 2013 - declaring an interim dividend of 5.2 cents per share, and
reaffirming that the Company is on track to achieve its full-year 2014
outlook (IPO forecast).
Chair, Joan Withers, said: "We have delivered operating earnings growth for
the half year, and we are on track for the full year - even with a quarter
less hydro than HY2013. Mighty River Power has responded to the competitive
dynamics in the market and is showing new levels of efficiency and
performance."
Mrs Withers said the Company was realising the expected benefits from its
investment in reliable base-load geothermal generation - which in HY2014 made
up more than 40% of total half-year production for the first time.
"We also managed to offset the impact of poor hydro by reducing our exposure
to business customers back to HY2012 levels and by concentrating our hydro
production into those times when it was most valued by the market. On the
cost side we have remained sharply-focused on operating expenditure and
achieving Company-wide gains in effectiveness and efficiencies."
Net Profit After Tax (NPAT) was up $48 million to $124 million, largely due
to lower operating costs, positive non-cash fair value movements, and one-off
effects in the prior period, while Underlying Earnings was down $28 million
mainly as a result of higher interest and depreciation costs following the
completion of the Ngatamariki station.
FINANCIAL HIGHLIGHTS:
o EBITDAF up 4% ($9.5 million) despite record low hydro inflows
o NPAT of $124 million (up $48 million) and Underlying Earnings of $105
million (down $28 million)
o Fully imputed interim dividend increased 8% to 5.2 cents per share in line
with IPO forecast
o On track to achieve IPO forecast for FY2014 EBITDAF of $498 million
Chief Executive, Doug Heffernan, said the achievement of the forecast 4%
($9.5 million) lift in Operating Earnings (EBITDAF) to $270 million was
challenging in light of the drought conditions that have impacted the central
North Island over much of the past 12 months.
Hydro volumes were down 34% in the first quarter of FY2014, which over the
full period equated to the loss of more than $33 million in potential
operating income due to inflows to Lake Taupo being the lowest since the
Company was formed in 1999.
This was partially offset by the timely additional contribution from
geothermal (up 25%) with the completion of the new Ngatamariki station at the
end of August, together with higher-than-expected cost savings.
Dr Heffernan said the higher proportion of generation coming from geothermal
generation - combined with a measured reduction in commercial sales
commitments - gave the Company greater flexibility when to use available
hydro generation. "This meant we were able to achieve better prices for our
production than the average in the market - and it was 97% geothermal and
hydro renewables."
Mighty River Power's Operating Expenditure fell $33.7 million, reflecting
permanent cost savings of $8.3 million and $25.4 million of one-off costs
incurred in the prior period. Dr Heffernan said savings had come through
taking direct control of international geothermal interests along with
broader savings in maintenance and other expenses, building on the cost
management gains achieved in the last quarter of FY2013.
End CA:00247497 For:MRP    Type:HALFYR     Time:2014-02-26 08:30:46