Mighty River Power delivered a strong operational and financial performance in the past year, while also completing another major geothermal development and the Crown’s initial public offering of shares in the business.
In the six months to December 31, EBITDAF increased by 2 per cent, and underlying earnings were up 31 per cent on the previous period. Mighty River Power is forecasting a net profit of $94.8 million, and EBITDAF of $382.6 million for the 12 months to June 2013.
Mighty River Power’s financial performance was boosted by its retail brands - Mercury Energy, GLO-BUG, Bosco Connect and Tiny Mighty Power – where it increased total electricity sales volumes by 9 per cent in the six months to December 31.
Commercial sales volumes in the same period grew by 22 per cent and Mighty River Power says it increased its share of the commercial segment by 13 per cent over the past year.
Growth in the medium-sized commercial sector in the past year was up 67 per cent, thanks largely to the acquisition of new business from high-value customers.
The company is also leveraging technology to offer more information and empowerment around energy use for its broad range of residential customers.
In March, Mighty River Power launched its in-home energy management tool – the Good Energy Monitor (GEM) – to give users greater control of their energy consumption and increase their `connection’ with the company.
Another product innovation – GLOBUG pay-as-you-go electricity – is also showing positive results as an industry-leading solution. The pre-pay technology, and a supporting network of community organisation and budgeting agencies, helped drive the company’s total disconnections down to an all-time low in the period of 0.05 per cent of the Mighty River Power customer base.
Disconnections can be for bill arrears, safety issues and long-term vacancy. In the case of arrears, about 95 per cent of accounts are paid and reconnected within 24 hours.
Mighty River Power’s customer acquisition and sales volume gains were made in a highly competitive environment in advance of the 82 MW Ngatamariki geothermal power station – which the company is currently in the process of commissioning – coming online.
Mighty River Power said that it had planned to secure increased sales volumes and lengthen customer contracts to help optimise the balance of its portfolio with the added base-load contribution of Ngatamariki. The completion of Ngatamariki will lift the share of the company’s electricity production from geothermal to 40 per cent. It is the third of the company’s major developments in New Zealand over the past five years, which have seen Mighty River Power become one of the world’s leading geothermal power station owners and a leader in geothermal development capability.
The Overall Energy Company of the Year award category is sponsored by Port Taranaki.