Mercury NZ (MCY) AGM 2024 summary

Opening remarks and agenda

• The meeting opened with welcomes, housekeeping, and an outline of the agenda, including board introductions, financial review, executive updates, resolutions, and Q&A.

• Voting procedures and Q&A protocols for both in-person and online attendees were explained.

• Chair's and Chief Executive's addresses were followed by executive presentations on key business activities, business resolutions, and Q&A.

Financial performance review

• Net profit after tax rose to NZD 290 million, driven by positive fair value movements, higher EBITDAF, and offset by higher taxes and interest.

• EBITDAF reached NZD 877 million, up 4% on FY23, supported by increased wind and geothermal generation and higher customer prices, but offset by reduced hydro generation and higher costs.

• Operating costs increased to NZD 385 million due to higher salaries, headcount, and maintenance, especially from new wind operations.

• CapEx rose to NZD 142 million, mainly from geothermal drilling.

• FY25 EBITDAF guidance is NZD 820 million, with lower hydro inflows and higher gas costs impacting outlook.

Dividend announcements

• A fully imputed final dividend of NZD 0.14 per share was declared, bringing the full-year ordinary dividend to NZD 0.233 per share, up 7% year-on-year and marking the 16th consecutive year of increases.

• FY25 ordinary dividend guidance is NZD 0.24 per share, a 3% increase, marking the 17th consecutive year of dividend growth.