Electricity generator and retailer Mighty River Power has announced a recovery in net profit for the six months to December 31 to $74 million from $8 million in the same period last year, as impairments created by withdrawal from international operations fell.
The partially privatised company and former state owned enterprise said its operating earnings were flat, falling just $1 million to $257 million on the basis of earnings before interest, tax depreciation, amortisation and changes in the value of financial instruments.
An increased interim dividend of 5.7 cents per share, up 2 percent, was declared, payable on March 31, although ebitdaf earnings guidance for the year was lowered and total dividend guidance remains unchanged for the full financial year at 14.3 cents.
Pricing and competitive pressure remained intense during the period, in a market that is among the most competitive in the world.
Earnings guidance is affected by lower than average water levels in the company's main hydro catchment, the Waikato River, and chair Joan Withers warned that "hydrology could shift ebitdaf 10 percent, so based on many years of experience, the company expects guidance to move during the year, possibly several times, as part of business as usual."
