Mercury NZ adds turbines and boosts trading margin

• Mercury NZ increased its trading margin by NZ$70 million to NZ$445 million.
• The company maintained its earnings guidance despite a drop in hydro inflows.
• Expansion projects in wind power helped offset significant hydro volume declines.

Mercury NZ (ASX:MCY) recorded a 19% increase in its quarterly trading margin to NZ$445 million following the expansion of its wind energy developments.

The utility provider achieved these higher margins despite hydro generation falling 24% due to low water inflows.

"This demonstrates the resilience of our earnings, supported by disciplined portfolio management and our diversified generation portfolio," said Mercury NZ CEO Stew Hamilton.

The company recently completed its NZ$486 million Kaiwera Downs Stage 2 Project, adding 36 wind turbines and 155MW of capacity.

Looking ahead, the business confirmed it remains on track to deliver its FY27 EBITDAF financial guidance.

Following the announcement, the Mercury NZ share price was up at $5.36.

For the current financial year, the power generator expects to allocate around NZ$150 million towards sustaining capital expenditure.

Additionally, the firm plans to spend between NZ$300 million and NZ$400 million on growth capital expenditure to expand its renewable projects.