05 October 2011
Mighty River Power today announced earnings (EBITDAF) guidance for FY2012 in the range of $430 million to $450 million. This compares with strong operating earnings of $443.1 million in FY2011, which benefited from favourable hydrology that was 10% higher than the long-run average.
Mighty River Power Chair, Joan Withers, said the guidance reflected the forward view of wholesale and retail markets, was based on normalised hydrology in the Waikato River catchment and the ongoing reliable operation of the Company’s geothermal stations.
Mrs Withers said geothermal production – that was not affected by climatic conditions – now contributed more than 30% of Mighty River Power’s annual generation. This, coupled with operating flexibility at the Company’s Southdown gas-generation plant and new inter-generator hedging arrangements, meant the Company’s earnings were now less influenced by hydro volatility.