Mighty River Power, the first of the state-owned power companies to be partially privatised last year, will quit its geothermal investments in Chile and Germany, while sticking with its interests in the US.
The Auckland-based company reviewed its international geothermal investments earlier this year and has decided to embark on a sale process for its assets in Germany and Chile, which are no longer in line with its long-term goals, it said. It decided to retain the US assets, including an interest in a 50 megawatt operating plant and a minority stake in a geothermal development firm, but won't commit any more development capital.
The decisions won't affect its 2015 dividend guidance of 14c per share, but the company is assessing the accounting implications.
"The current strategic focus is on incremental consumer-focused growth options, including smart meter deployment and data services," said chief executive Fraser Whineray.
"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 any significant capital investment."
