Mercury NZ reports 19% increase in Q1 trading margin

Mercury NZ Limited reported a 19% increase in its first-quarter trading margin for FY27, reaching $445 million for the period ending September 30, 2026. Despite low hydrological conditions in the Waikato region, the company's diversified renewable portfolio helped maintain earnings resilience.

Key operational developments include the completion of the Kaiwera Downs Stage 2 expansion, which added 155MW of capacity via 36 turbines. Additionally, the Kaiwaikawe Wind Farm has commenced generation following the installation of 12 turbines. The company is also progressing with the Puke Kapo Hau Wind Farm, with construction expected to begin in November 2026.

Total generation volume for the quarter was 2,526GWh. While hydro volumes decreased by 332GWh, this was offset by a 307GWh increase from new wind and geothermal sources. Mercury expects growth capital expenditure to be between $300 million and $400 million for FY27.