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Mercury NZ (MCY) investor relations material
Mercury NZ Investor Presentation summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Strong investor proposition and market positioning
Operates a diversified renewable portfolio with ~8.8 TWh generation and 906k customer connections, holding 19% generation and 25% retail electricity market share in New Zealand.
Delivers consistent ordinary dividend growth for 17 years, with FY26 EBITDAF guidance at $1b and FY30 aspiration of $1.15–$1.25b, implying 5–7% annualized growth.
Holds a BBB+ credit rating, maintains a strong balance sheet with Debt/EBITDA at 2.5x, and robust liquidity headroom to fund growth.
Recognized by analysts with 'Outperform' and 'Overweight' ratings, and a market capitalization of ~$9b.
Delivers an annualized total shareholder return of 11% since listing in 2013.
Growth strategy and renewable development
Accelerating renewable growth through wind and geothermal, with 1.1 TWh in construction and a pipeline targeting 3.5 TWh new generation by 2030.
Geothermal portfolio is a global leader, with 0.5GW/3.6TWh operational and up to 5TWh potential post-2030; NZ government selected Rotokawa for next-gen geothermal research.
Wind remains a focus due to cost advantage, with major projects like Kaiwera Downs II and Kaiwaikawe underway.
Solar and battery storage (BESS) options are being explored for future flexibility and scale.
Value-accretive projects in construction have lower long-run marginal costs than solar, supporting further investment.
Market environment and demand outlook
New Zealand's electricity market is highly renewable (>80%), competitive, and globally ranked for security, affordability, and sustainability.
National demand declined 2.2% in FY25 due to industrial closures and wetter conditions, but long-term growth is expected from electrification and data center expansion.
Declining gas reserves and electrification of transport and industry are key drivers for sustained electricity demand growth.
Wholesale electricity prices signal further investment as gas production declines and hydrological conditions fluctuate.
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