Mercury NZ reports revenue and profit growth on renewables push

Mercury NZ reports revenue and profit growth as renewable investments pay off.

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Key points

  • Mercury NZ reported a 21% revenue increase and a 29% rise in net profit after tax, alongside a 22% growth in EBITDAF, maintaining a robust balance sheet.
  • The company continues to lead in the New Zealand electricity market with strong market share in hydro, wind, and geothermal energy, focusing on renewable projects and digital transformation to enhance customer experience.
  • Despite a 10% decline in share price over the past year, Mercury NZ plans to accelerate investments in renewable energy and remains optimistic about the market's outlook and delivering steady shareholder returns.

The Mercury NZ Ltd (ASX: MCY) share price is drawing attention today after the company posted its latest earnings, including a rise in revenue and further growth across important segments.

What did Mercury NZ report?

  • Revenue increased by 21% compared to the prior period
  • Net profit after tax (NPAT) climbed 29%
  • EBITDAF grew 22% year on year
  • The company maintained a strong balance sheet
  • Final dividend declared, maintaining previous payout levels

What else do investors need to know?

Mercury NZ, a major New Zealand electricity generator and retailer, continues to hold significant market share across hydro, wind, and geothermal energy. The company's recent investments in renewable projects have supported operational growth and sustainability goals.

Customer numbers remain steady, underpinned by stable demand across both residential and business segments. Management also noted ongoing progress in digital transformation, aimed at improving customer experience and operational efficiency.

What's next for Mercury NZ?

Looking ahead, Mercury NZ intends to accelerate its investment in renewable energy generation, further reinforcing its leadership in the domestic electricity market. Management is also focused on long-term value creation, targeting sustainable growth through innovation and enhancing the company's technology platform.

The company has given no specific financial guidance but remains positive about the sector's outlook and its ability to deliver steady returns for shareholders.

Mercury NZ share price snapshot

Over the past 12 months, the Mercury NZ share price has declined 10%, underperforming the S&P/ASX 200 Index (ASX: XJO) which has risen around 8% over the same period.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

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