Mighty River Power's profit has tumbled 76% from a year ago, after the electricity generator-retailer booked one-off non-cash writedowns of $130million in exiting generation assets or developments.
Mighty River Power's (MRP) profit plunge was not reflected in its dividend, which rose from 13.5c a year ago to 14c per share. There was a December special dividend of 5c, plus an additional special dividend of 2.5c yesterday - all up, 21.5c for the year.
As 51% shareholder since partial privatisation in 2013, the Government will receive $150.9million of the overall $296million in dividends.
Combined with its dividend of $82million from Genesis Energy and $238.2million from Meridian Energy, the Government gets a total $471.1million from the three companies.
MRP's revenue was down slightly from $1.67billion a year ago to $1.63billion, earnings before interest, tax, depreciation, amortisation and financial instruments (Ebitdaf) was down 4%, from $504million a year ago to $482million.
After-tax profit fell 76%, from $212million to $47million.
MRP's chairwoman Joan Withers said the result reflected strong cashflows and ''a resilient business'' during a year of ''intense market competition and lowest-ever hydro-generation'', 17% below average and representing a $52million.
Also impacting on the bottom line was MRP's energy profit margin, total electricity sales less production and network costs, which declined by $39million, from $687million to $648million.
The $130million writedowns were to exit geothermal developments in Germany ($12million), and Chile, ($57million), with no more development capital going into a US project ($14million), a further $44million to close its Southdown gas-fired power station, and $3million for undeveloped New Zealand geothermal projects.
''It should be a very positive signal to our 100,000 owners about the underlying strength of Mighty River Power,'' Mrs Withers said.
Craigs Investment Partners broker Peter McIntyre said during the year, MRP suffered from weak generation and lower commercial and industrial sales.
''If it had been an average hydro year the company estimates that the Ebitda would have been closer to $532million, or $52million higher,'' he said.
The commercial and industrial sales volumes for the year fell by 3%. Pricing was flat and revenues similarly down 3%, he said.
However, Mr McIntyre noted residential volumes were up 2%, and combined with pricing increases, drove those revenues up by about 9%.
MRP gave guidance yesterday its Ebitdaf next year would be in a range of $490million to $515million, and forecast a 14.3c dividend.
''Its dams are in good position to assist growth over full-year 2016, the outlook is positive and the [forecast] dividend should be well received,'' Mr McIntyre said.
MRP, Contact Energy and Genesis Energy have all announced the closure of gas and coal-fired power plants recently, removing more than 1000 megawatts of capacity from the national electricity system, which will create upward pressure on wholesale electricity prices from about 2018 onwards, according to presentation slides accompanying the MRP result, BusinessDesk reported.
