Mighty River reports $21.4m rise in net profit

State-owned power generator Mighty River Power today reported a net profit of $121.2 million for the year ended June, up $21.4 million on the previous year.

The profit was generated on the back of operating revenue of $684.4 million, up from $599.2 million last year.

Chief executive Doug Heffernan said the result was driven by healthy inflows into the Waikato-Taupo catchment area in the first half of the year as well as continued retail growth.

Customer numbers for Mighty River's retail business, Mercury Energy, rose to 317,000 from 300,000 over the year.

Mighty River chairman Carole Durbin said most of the profit was reinvested in the business.

Mighty River has been exploring its options to grow its generation capacity and Mr Heffernan said the company was focused on establishing a diverse supply portfolio.

"We are looking at all the energy options available. In looking at these options there is a need to get the balance right and recognise the trade-offs between economic, social and environmental considerations," he said.

Expanding wind, coal and gas generation could all be on the cards.

Additional wells have already been drilled at its Rotokawa geothermal station.

The company is looking at restarting the mothballed Marsden B power station using coal. It has also filed consent applications for a 70 MW geothermal plant at Kawerau and formed a partnership with Palmerston North City Council for a potential wind farm development at Turitea.

- NZPA