Mercury NZ: On Track for Solid Earnings Growth Driven by Higher Electricity Prices and Wind Farms

Following a bumper fiscal 2023, with wetter-than-average hydrological conditions and record high hydro generation, inflows in the Waikato catchment have normalized in fiscal 2024. In the fiscal year to date, hydro generation fell 22% to 3,077 gigawatt hours compared with the same period last year. However, relative to the long-run historical level, Waikato inflows over the March quarter were slightly above average. We forecast that the full fiscal year 2024 hydro generation will broadly align with an average year.