Mercury NZ (NZSE: MCY) released its first-half 2025 financial results, reporting a net loss per share of NZ$0.048, a sharp decline from its NZ$0.13 profit per share in 1H 2024. Despite the loss, the company posted 9.3% revenue growth, reflecting strong electricity demand and higher wholesale power prices.
Key Financial Highlights
- Revenue: NZ$1.76 billion, up 9.3% year-over-year.
- Net Loss per Share: NZ$0.048, compared to a profit of NZ$0.13 per share in 1H 2024.
- Operational Challenges: Higher operating costs and market volatility impacted profitability.
Factors Behind the Loss
- Rising Operating & Generation Costs
- Increased costs related to electricity generation and infrastructure maintenance weighed on earnings.
- Market & Weather Volatility
- Fluctuations in hydropower generation and wholesale electricity pricing contributed to financial headwinds.
- Investments in Renewable Energy
- Mercury continues to expand its wind and geothermal projects, which may have led to short-term cost pressures.
Looking Ahead: 2025 Outlook
Despite the first-half loss, Mercury remains focused on:
- Strengthening renewable energy capacity to enhance long-term revenue stability.
- Managing cost pressures to improve profitability in the second half of the year.
- Optimizing energy production amid fluctuating market conditions.
While higher revenue is a positive sign, Mercury NZ will need to navigate cost challenges and energy market volatility to regain profitability in the coming quarters.
