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 overcame low hydro inflows and dry conditions to meet its early targets and report a 4% increase in operating earnings for the six months ended December.
Political risk remained a key concern for investors in Mighty River Power, Wanaka-based Logic Fund Management financial adviser Paul Gardner said yesterday.
Mighty River Power said it would buy back up to $50 million of its shares as part of its capital management plans.
The Government can breathe a sigh of relief after Mighty River Power yesterday reported financial results ahead of its prospectus forecasts, Craigs Investment Partners broker Chris Timms says.
The successful listing yesterday of Z Energy is likely to cause some concern for the Government as it prepares to list Meridian Energy, the largest of its state-owned energy companies, in October.
Dry conditions in the North Island resulted in Mighty River Power reporting in April its lowest monthly hydro production on record, the company said yesterday.
The Government's tagging of $100 million to prop up ailing state-owned enterprise Solid Energy from the $3.5 billion Mighty River Power part-sale has been described by Labour as a ''cover-up gone wrong''.
The Government accounts continue to move closer to the black, helped in May by the partial sale of Mighty River Power.
Prime Minister John Key believes Labour and the Greens will not actually follow through with their plan to radically reform the wholesale electricity market should they be elected to government.
The Government has set a price of $2.35 to $2.80 per share for the partial privatisation of Mighty River Power, the Minister of State Owned Enterprises, Tony Ryall, says.
The success yesterday of the Mighty River Power listing on the NZX would provide a huge boost for the next initial public offering coming to the market, Milford Asset Management senior analyst William Curtayne says.
Demand for Mighty River Power shares this afternoon is expected to come from New Zealand institutions that were scaled back in their requests and allocations.
Demand is still expected to be keen for Mighty River Power shares but the pricing of the shares today will give the best indication yet of any damage inflicted on the partial float of the company by Labour and the Greens.
Sharebrokers were yesterday reporting a last-minute flood of investor interest in Mighty River Power (MRP) shares before the offer closed at 5pm.
Sharebrokers were yesterday left seething after Green Party energy spokesman Gareth Hughes turned the debate into a proposed reduction of power prices personal by calling those opposing the plan greedy.
Sharebrokers are reporting increased inquiries about Mighty River Power shares and some investors deciding to cancel their orders and get their money back.
Jittery investors who have applied for shares in state-owned Mighty River Power have been given until midnight on May 1 to withdraw their applications if they think the Labour-Greens' new power policy could damage the value of their shares.
Shares for the controversial state-owned enterprise Mighty River Power (MRP) partial float go on sale from today, with expectations the company will list on the New Zealand stock exchange on May 10.
Mighty River Power is expected to list on May 10 with the indicative price range for the shares coming in at between $2.35 and $2.80 per share.
