Ann: QUARTER: MRP: Quarterly Operational Update

• Release Date: 20/07/15 08:30
• Summary: QUARTER: MRP: Quarterly Operational Update
• Price Sensitive: No
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					MRP
20/07/2015 08:30
QUARTER
PRICE SENSITIVE
REL: 0830 HRS Mighty River Power Limited (NS)

QUARTER: MRP: Quarterly Operational Update

o Electricity demand up 2.5% reflecting growth across all sectors
o Annual hydro production down 170GWh compared to FY2014 - lowest in the
Company's history
o Flat energy price for the quarter, slightly down year on year

TREND OF DEMAND GROWTH CONTINUES; ASX PRICES FALL

Demand for electricity increased 2.5% during the three months to 30 June 2015
compared with the same period last year. After adjusting for lower
temperatures, demand for the quarter is estimated to have increased 1.8%,
reflecting growth across all sectors (dairy processing 0.6%, rural 0.5%,
urban 0.4%, industrial 0.1%, and South Island irrigation 0.01%). The trend of
thermal capacity rationalisation continued with the confirmation from Genesis
on 29 June that it would be permanently retiring a second 250MW Hunty
coal/gas unit.

Despite these trends, ASX futures prices were down by $18.25/MWh for FY2016
and $6.73/MWh for FY2017 since the end of March reflecting a recovery in
national hydro storage during the fourth quarter of FY2015, decreased
perceived dry-year risk priced into future years, and the on-going
speculation about the level of future demand from Tiwai Point aluminium
smelter.

HYDRO UP 6% FOR THE PERIOD, BUT DOWN 170GWh FOR THE FULL YEAR

Hydro production was 864GWh for the period, up 6% on pcp, with inflows for
the quarter being 112% of average - the first quarter in two years that there
has been inflows at or above average into the Waikato catchment.  Despite
higher inflows for Q4, inflows for FY2015 were just 85% of average and hydro
generation for the FY2015 year was the lowest in the Company's history.

Total generation for the quarter was up 147GWh on pcp, with geothermal
generation increasing by 54GWh to 723GWh. This was mainly due to higher
production from both Nga Awa Purua and Ngatamariki - with increased fuel
availability at Ngatamariki from a new well commissioned in October 2014. The
increase on pcp at Nga Awa Purua was due to the two outages in FY2014
associated with stabilising the plant ahead of a planned outage in
July/August 2015 for the rotor replacement, that will increase production at
the plant.

Gas-fired generation from Southdown was up 44GWh on pcp, largely reflecting
the Company's virtual peaker contract, and the use of take-or-pay gas ahead
of the station's closure on 31 December 2015.

ENERGY PRICES FLAT FOR THE QUARTER, SLIGHTLY DOWN YEAR ON YEAR

The average electricity sales price to residential and commercial customers
for the quarter was $122.22/MWh, which was consistent with pcp. The price
reduced slightly from $117.70/MWh in FY2014 to $117.21/MWh in FY2015, as the
Company continues to absorb annual increases in line charges for the one
third of its customers on two and three year fixed-price contracts.

Mighty River Power will release its financial results for the 12 months ended
30 June 2015 on 28 August 2015.
End CA:00267129 For:MRP    Type:QUARTER    Time:2015-07-20 08:30:07