By Digifin Pty Ltd · About this coverage
Key Points
- Trading margin $445 million for the quarter, up $70 million or 19% on the prior corresponding period
- Waikato hydro inflows at the second percentile, against the 71st percentile a year earlier
- Hydro volumes down 332GWh or 24%, partly offset by 307GWh of new wind and geothermal generation
- Kaiwera Downs Stage 2 at full generation, adding 36 turbines and 155MW of installed capacity
- FY27 SIB CAPEX expected around $150 million and growth CAPEX between $300 million and $400 million
About Mercury (ASX:MCY)
Mercury NZ Limited is an Auckland-based electricity generator and retailer quoted on the NZX and the ASX. It generates electricity from hydro stations on the Waikato River, geothermal plants in the central North Island and wind farms, and sells electricity, gas, broadband and mobile services to New Zealand households and businesses. It reports in New Zealand dollars.
Mercury (ASX:MCY) reported a higher first-quarter FY27 trading margin even though Waikato hydro inflows were at the second percentile, with new wind and geothermal output covering most of the lost hydro generation.
Trading margin for the three months to 30 September 2026 was $445 million, up $70 million or 19% on the prior corresponding period. Generation volume was 2,526GWh, down 26GWh: new wind and geothermal generation added 307GWh, while hydro volumes fell 332GWh or 24% to 1,057GWh. Generation VWAP fell to $72.0/MWh from $124.7/MWh, and derivative margin was $40 million against negative $1 million a year earlier. Kaiwera Downs Stage 2, a $486 million project adding 36 turbines and 155MW of installed capacity, has reached full generation. All 12 turbines are installed at Kaiwaikawe Wind Farm, which began generating in July, and works at Puke Kapo Hau Wind Farm are expected to begin in November 2026. FY27 SIB CAPEX is expected to be around $150 million and growth CAPEX between $300 million and $400 million.
Mercury says it remains on track to deliver FY27 EBITDAF guidance, but the release does not restate the guidance figure or state the currency of its dollar amounts. The operating data is unaudited, preliminary and subject to change.
Source: Mercury NZ Limited (ASX:MCY), 14 October 2026. Summary content supplied by Digifin Pty Ltd.
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