Mercury Energy posts $1 billion in earnings on strong hydro generation
The company's bottom line profit also rebounded strongly after last year's results were affected by one-offs.
Mercury Energy reported record operating earnings of $1.07 billion for the financial year ending June, marking a 36 percent increase from the previous year and surpassing the $1 billion mark for the first time. The company's strong performance was driven by robust hydro generation, which rose by 31 percent due to increased inflows into the Waikato catchment. To capitalize on this success, Mercury committed to reinvesting 66 percent of its 2026 operating earnings into new and existing renewable generation assets.
Among the new projects commissioned during the year were three geothermal expansions and new wind farms, contributing to a total increase in hydro generation. The company's chief executive, Stew Hamilton, emphasized the company's dedication to converting financial performance into enhanced system resilience and supporting New Zealand's future economic growth.
Looking ahead, Mercury plans to develop the Puke Kapo Hau wind farm, located west of Dunedin, to meet the energy demands of South Island, including the ambitious data center project by Datagrid NZ. The company recently announced a $53 million investment in Datagrid NZ, demonstrating the long-term value of renewable development and prudent investment strategies. Mercury anticipates operating earnings for the year ending June 2027 to be around $1.075 billion.
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