Mercury NZ (NZX:MCY): Is it 100% renewable energy company?

December 07, 2021 02:38 PM AEDT | By Sonal
Follow us on Google News:


  • Mercury NZ produces electricity using 100% renewable sources.
  • MCY stayed resilient in FY21 amid a challenging environment.
  • The Group continues to make a renewable investment to support NZ in its goal of achieving net-zero carbon emissions by 2050.

Mercury NZ Limited (NZX:MCYis the generator and retailer of electricity. It is focused on fulfilling energy requirements of NZ homes and businesses. Mercury plans to make NZ more efficient and viable by using domestic renewable energy.

Mercury’s details

Image source: © 2021 Kalkine Media, Data source- Refinitiv

The Group produces electricity from 100% renewable sources - hydro, wind and geothermal.

FY21 Performance

Mercury stayed resilient in FY21 amid a challenging production environment and increased spot prices.

The Group reported an NPAT of $141 million and EBITDAF of $463 million for the year ended 30 June 2021, down from $209 million and $490 million, respectively, in the previous year.

ALSO READ: Which 5 NZX stocks are the top penny players of 2021?

However, Mercury stayed well placed from capital and liquidity perspectives. MCY Board declared a full-year dividend of 10.2cps, taking the full-year dividend to 17cps.

Must Read: Which 5 NZX dividend stocks under NZ$5 to consider in 2022?

The Group took bold steps to bring a change and shape its future. In June 2020, MCY entered into a deal to buy Trustpower’s retail business to fast-track its capability to provide the right product mix and value for clients.


Renewable investment

A large amount of investment in renewable energy is needed to replace fossil fuel generation amid climate change threats. Mercury has pledged to invest in renewable production to support decarbonisation and diversify its production sources to reduce the impact of dry years.

RELATED READ: 5 NZX energy stocks that can be explored before 2022

The Group acquired Tilt Renewables’ 5 running wind farms in NZ and their future development choices in August. The acquisition would enable MCY to increase its total annual production by more than 1100GWh and add to its own line of future wind development options in NZ.

Related Read: Are these 5 NZX mid-cap aiming to become large-cap stocks?

Moreover, the construction of the Turitea wind farm is ongoing with grid connection, transmission line and northern windfarm substation fully commissioned. The project time remains dependent on the contractor’s performance.

On 7 December, at the time of writing, MCY was trading at $5.875, down 0.42%.

Bottom Line

Mercury is well positioned to play its role in achieving net-zero carbon emissions by 2050. The Group has set its earnings guidance at $590 million in FY22 and a dividend guidance of 20cps.

(NOTE: Currency is reported in NZ Dollar unless stated otherwise)


The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.

Top ASX Listed Companies

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK