Declared Dividend • Aug 20
Final dividend of NZ$0.20 announced Shareholders will receive a dividend of NZ$0.20. Ex-date: 2nd September 2026 Payment date: 30th September 2026 Dividend yield will be 5.1%, which is higher than the industry average of 4.3%. Sustainability & Growth Dividend is covered by earnings (3% earnings payout ratio) but not covered by cash flows (dividend approximately 6x free cash flows). The dividend has increased by an average of 5.5% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 5.6% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Aug 18
Full year 2026 earnings: EPS and revenues miss analyst expectations Full year 2026 results: EPS: NZ$0.23 (up from NZ$0.001 in FY 2025). Revenue: NZ$3.22b (down 7.8% from FY 2025). Net income: NZ$321.0m (up NZ$320.0m from FY 2025). Profit margin: 10.0% (up from 0% in FY 2025). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 2.6%. Earnings per share (EPS) also missed analyst estimates by 5.6%. Revenue is forecast to stay flat during the next 3 years compared to a 5.4% growth forecast for the Global Electric Utilities industry. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Announcement • Jul 24
Mercury NZ Limited, Annual General Meeting, Sep 18, 2026 Mercury NZ Limited, Annual General Meeting, Sep 18, 2026. Location: eden park, New Zealand Announcement • Jul 01
Mercury NZ Limited Announces Resignation of Craig Neustroski from Chief Strategy and Transformation Officer Role, Effective End of July 2026 Mercury NZ Limited announced that Chief Strategy and Transformation Officer, Craig Neustroski, had resigned and would leave the company at the end of July 2026. Craig Neustroski had made a significant contribution over his five years with Mercury, and throughout his long career with Trustpower. He played a key leadership role, most notably leading the successful Trustpower integration with Mercury that created New Zealand's largest electricity retailer. Announcement • Jun 24
Mercury NZ Limited to Report Fiscal Year 2026 Results on Aug 18, 2026 Mercury NZ Limited announced that they will report fiscal year 2026 results on Aug 18, 2026 Declared Dividend • Feb 26
First half dividend of NZ$0.12 announced Shareholders will receive a dividend of NZ$0.12. Ex-date: 4th March 2026 Payment date: 1st April 2026 Dividend yield will be 5.1%, which is higher than the industry average of 4.3%. Sustainability & Growth Dividend is not covered by earnings (390% earnings payout ratio) nor is it covered by cash flows (351% cash payout ratio). The dividend has increased by an average of 5.5% per year over the past 10 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 334% to bring the payout ratio under control. EPS is expected to grow by 62% over the next 3 years, which means the dividend may need to be reduced to reach a sustainable payout ratio. Announcement • Feb 25
Mercury NZ Limited Announces Distribution for the Six Months Ended December 31, 2025, Payable on April 1, 2026 Mercury NZ Limited has announced a new distribution in respect of its ordinary fully paid foreign exempt NZX shares for the Six Months Ended December 31, 2025 (MCY). The distribution amount is NZD 0.11764706 per share. The ex-date for the distribution is 4 March 2026, and the record date is 5 March 2026. The payment date has been fixed as 1 April 2026. Reported Earnings • Feb 25
First half 2026 earnings released: EPS: NZ$0.014 (vs NZ$0.048 loss in 1H 2025) First half 2026 results: EPS: NZ$0.014 (up from NZ$0.048 loss in 1H 2025). Revenue: NZ$1.66b (down 5.2% from 1H 2025). Net income: NZ$20.0m (up NZ$87.0m from 1H 2025). Profit margin: 1.2% (up from net loss in 1H 2025). The move to profitability was driven by lower expenses. Revenue is forecast to grow 1.8% p.a. on average during the next 3 years, compared to a 5.3% growth forecast for the Global Electric Utilities industry. Over the last 3 years on average, earnings per share has fallen by 47% per year but the company’s share price has only fallen by 2% per year, which means it has not declined as severely as earnings. Announcement • Jan 09
Mercury NZ Limited to Report First Half, 2026 Results on Feb 24, 2026 Mercury NZ Limited announced that they will report first half, 2026 results on Feb 24, 2026 Announcement • Oct 02
Mercury NZ Limited Announces Appointment of Suraiya Phillimore-Smith as Chief Customer Officer, Effective 3 November 2025 Mercury NZ Limited has appointed Suraiya Phillimore-Smith as its Chief Customer Officer, with effect from 3 November 2025. Suraiya has more than 20 years' local and international experience in customer strategy, marketing and brand across financial services, telecommunications and technology, including executive level roles at Suncorp NZ and Westpac NZ. Suraiya was previously Chief Customer Officer at Suncorp NZ where she led a large team responsible for customer, sales, distribution, brand, marketing, government relations and ESG strategy across intermediated general insurance channels. Prior to that, she was Chief Marketing Officer at Westpac NZ. She has also worked in a range of roles for Vodafone NZ, Vodafone UK and Sony. As disclosed earlier, Mercury's previous Chief Operating Officer Customer, Craig Neustroski, remains in the business as Chief Strategy and Transformation Officer and will support the transition. Declared Dividend • Aug 21
Final dividend of NZ$0.17 announced Shareholders will receive a dividend of NZ$0.17. Ex-date: 3rd September 2025 Payment date: 30th September 2025 Dividend yield will be 4.6%, which is about the same as the industry average. Sustainability & Growth Dividend is not covered by earnings (dividend approximately 336x earnings) nor is it covered by cash flows (dividend approximately 6x free cash flows). The dividend has increased by an average of 5.6% per year over the past 10 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 37,248% to bring the payout ratio under control. EPS is expected to grow by 93% over the next 3 years, which means the dividend may need to be reduced to reach a sustainable payout ratio. Reported Earnings • Aug 19
Full year 2025 earnings released: EPS: NZ$0.001 (vs NZ$0.21 in FY 2024) Full year 2025 results: EPS: NZ$0.001 (down from NZ$0.21 in FY 2024). Revenue: NZ$3.50b (up 2.2% from FY 2024). Net income: NZ$1.00m (down 100% from FY 2024). Profit margin: 0% (down from 8.5% in FY 2024). Revenue is forecast to stay flat during the next 3 years compared to a 5.0% growth forecast for the Global Electric Utilities industry. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 66 percentage points per year, which is a significant difference in performance. Announcement • Jul 23
Mercury NZ Limited, Annual General Meeting, Sep 19, 2025 Mercury NZ Limited, Annual General Meeting, Sep 19, 2025. Location: eden park, New Zealand Announcement • Jun 30
Mercury NZ Limited to Report Fiscal Year 2025 Results on Aug 19, 2025 Mercury NZ Limited announced that they will report fiscal year 2025 results on Aug 19, 2025 Announcement • Apr 24
Mercury NZ Limited Announces Executive Changes Mercury NZ Limited announced that senior energy executive Catherine Thompson has been appointed as Mercury's new Chief Sustainability Officer and will start the role on 28 July 2025. Catherine has over 30 years' experience across the energy and legal sectors, including executive level roles at major New Zealand energy providers, Contact Energy and Manawa Energy. She has expertise across corporate affairs functions as well as sustainability and consenting, strategy and risk management. Catherine was previously GM Regulatory & Risk for Manawa Energy and prior to that was Chief Corporate Affairs Officer and General Counsel for Contact Energy. She has also worked in private practice and in-house legal roles both in the UK and New Zealand. Current Chief Sustainability Officer, Lucie Drummond, will stay on until June 2025 to support with the transition. Announcement • Apr 16
Mercury NZ Limited Remains Ordinary Dividend Guidance Unchanged Mercury NZ Limited announced that FY2025 ordinary dividend guidance remains unchanged at 24.0 cents per share and stay-in-business capital expenditure guidance remains unchanged at $150 million. Announcement • Mar 24
Mercury Appoints Kevin Taylor as Chief Operating Officer - Generation, Effective 8 April 2025 Mercury NZ Limited has appointed Kevin Taylor as its Chief Operating Officer - Generation, with effect from 8 April 2025. Kevin brings over 34 years of extensive experience within large industry, including expertise in operational excellence, risk management and safety leadership. Most recently he was the General Manager for Rio Tinto Pacific Operations. Mr. Taylor's experience spans various leadership positions across New Zealand and Australia, including General Manager at Bell Bay Aluminium and Health, Safety and Environment General Manager at Rio Tinto Aluminium (Pacific). As Chief Operating Officer - Generation, Mr. Taylor will be responsible for the safe operation and maintenance of Mercury's electricity generation assets, which last financial year produced about 8,780 GWh of renewable electricity, enough to power more than 1.2 million homes. Declared Dividend • Feb 27
First half dividend of NZ$0.11 announced Shareholders will receive a dividend of NZ$0.11. Ex-date: 5th March 2025 Payment date: 1st April 2025 Dividend yield will be 4.9%, which is higher than the industry average of 4.3%. Sustainability & Growth Dividend is not covered by earnings (dividend approximately 6x earnings) nor is it covered by cash flows (220% cash payout ratio). The dividend has increased by an average of 5.9% per year over the past 10 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 646% to bring the payout ratio under control. EPS is expected to grow by 90% over the next 3 years, which means the dividend may need to be reduced to reach a sustainable payout ratio. Reported Earnings • Feb 26
First half 2025 earnings released: NZ$0.048 loss per share (vs NZ$0.13 profit in 1H 2024) First half 2025 results: NZ$0.048 loss per share (down from NZ$0.13 profit in 1H 2024). Revenue: NZ$1.76b (up 9.3% from 1H 2024). Net loss: NZ$67.0m (down 139% from profit in 1H 2024). Revenue is forecast to stay flat during the next 3 years compared to a 1.2% decline forecast for the Electric Utilities industry in Oceania. Over the last 3 years on average, earnings per share has fallen by 53% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings. New Risk • Feb 25
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 2.0x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (2.0x net interest cover). Dividend is not well covered by earnings and cash flows. Dividend per share is over 6x earnings per share. Cash payout ratio: 220% Announcement • Jan 21
Mercury NZ Limited Announces CFO Changes Mercury NZ Limited has appointed Richard Hopkins as its Chief Financial Officer, effective 14 April 2025. Richard brings over 25 years’ local and international experience across the finance sector and primary industries, including more than a decade in CFO roles for major New Zealand companies. An experienced executive, Richard has deep expertise in corporate finance, M&A, business transformation and strategy development. Richard is currently the CFO of Zespri International Ltd. where he leads a large global team. There, he is responsible for the company’s finance, tax and treasury, legal, company secretary, risk and assurance, procurement, corporate development and integrated business planning functions. That followed nearly a decade at Ballance Agri-Nutrients where he held a broad range of roles and responsibilities across finance, sales, growth and digital transformation, including six years as CFO. Richard originally comes from a banking background. This has included roles at investment banks HSBC and Credit Suisse in the UK, where he specialised in power and utility sector transactions; and at Westpac in New Zealand, where he was a director in their Corporate Finance team. Mercury will work through a comprehensive handover with current CFO, William Meek, who leaves Mercury at the end of March 2025. Announcement • Dec 17
Mercury NZ Limited to Report First Half, 2025 Results on Feb 25, 2025 Mercury NZ Limited announced that they will report first half, 2025 results on Feb 25, 2025 Announcement • Sep 19
Mercury NZ Limited Announces CEO Changes The Board of Mercury NZ Limited appointed Stew Hamilton to the role of Chief Executive, succeeding Vince Hawksworth who retired at the end of August 2024. Stew was previously Mercury's Executive General Manager Generation. He has a proven track record of success in leading large, complex businesses changesin New Zealand and internationally. His appointment is the result of the Board's strategic focus on succession planning, and testament to the depth of talent have within Mercury. Upcoming Dividend • Sep 05
Upcoming dividend of NZ$0.16 per share Eligible shareholders must have bought the stock before 11 September 2024. Payment date: 30 September 2024. The company is paying out more than 100% of its profits and is paying out 96% of its cash flow. Trailing yield: 3.7%. Lower than top quartile of Australian dividend payers (6.2%). Lower than average of industry peers (5.0%). Board Change • Aug 23
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Director Nicole Roise was the last director to join the board, commencing their role in 2024. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Declared Dividend • Aug 22
Final dividend of NZ$0.16 announced Shareholders will receive a dividend of NZ$0.16. Ex-date: 11th September 2024 Payment date: 30th September 2024 Dividend yield will be 4.4%, which is about the same as the industry average. Sustainability & Growth Dividend is not covered by earnings (112% earnings payout ratio) nor is it covered by cash flows (120% cash payout ratio). The dividend has increased by an average of 6.3% per year over the past 10 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 24% to bring the payout ratio under control. EPS is expected to grow by 8.4% over the next 3 years, which means the dividend may need to be reduced to reach a sustainable payout ratio. Announcement • Aug 22
Mercury NZ Limited Announces Final Dividend and Supplementary Dividend for the Fiscal 2024, Payable on 30 September 2024; Provides Dividend Guidance for the Fiscal Year 2025 On 20 August 2024 the Mercury NZ Limited's Board declared a fully imputed final dividend of 14.0 cents per share to all shareholders who are on the Company's share register at 5pm on the record date of 12 September 2024. The dividends will be imputed at a corporate tax rate of 28%, which amounts to an imputation credit of 5.4 cents per share for the final dividend. The dividend is payable on 30 September 2024. The company also pay a supplementary dividend of 2.5 cents per share relating to the final dividend to non-resident shareholders.
For the Fiscal year 2025, ordinary dividend guidance is 24.0 cents per share, representing a 3% increase on fiscal year 2024 and the seventeenth consecutive year of ordinary dividend increases. Reported Earnings • Aug 20
Full year 2024 earnings released: EPS: NZ$0.21 (vs NZ$0.074 in FY 2023) Full year 2024 results: EPS: NZ$0.21 (up from NZ$0.074 in FY 2023). Revenue: NZ$3.42b (up 25% from FY 2023). Net income: NZ$290.0m (up 182% from FY 2023). Profit margin: 8.5% (up from 3.8% in FY 2023). The increase in margin was driven by higher revenue. Revenue is forecast to decline by 3.1% p.a. on average during the next 3 years, while revenues in the Electric Utilities industry in Oceania are expected to remain flat. Over the last 3 years on average, earnings per share has fallen by 30% per year but the company’s share price has only fallen by 3% per year, which means it has not declined as severely as earnings. Announcement • Jul 22
Mercury NZ Limited, Annual General Meeting, Sep 19, 2024 Mercury NZ Limited, Annual General Meeting, Sep 19, 2024. Announcement • Jul 02
Mercury NZ Limited to Report Fiscal Year 2024 Results on Aug 20, 2024 Mercury NZ Limited announced that they will report fiscal year 2024 results Pre-Market on Aug 20, 2024 Upcoming Dividend • Mar 06
Upcoming dividend of NZ$0.11 per share Eligible shareholders must have bought the stock before 13 March 2024. Payment date: 02 April 2024. The company is paying out more than 100% of its earnings and cash flow. Trailing yield: 3.3%. Lower than top quartile of Australian dividend payers (6.3%). Lower than average of industry peers (5.1%). Declared Dividend • Feb 25
First half dividend of NZ$0.11 announced Shareholders will receive a dividend of NZ$0.11. Ex-date: 13th March 2024 Payment date: 2nd April 2024 Dividend yield will be 4.0%, which is lower than the industry average of 4.3%. Sustainability & Growth Dividend is not covered by earnings (dividend approximately 8x earnings) nor is it covered by cash flows (199% cash payout ratio). The dividend has increased by an average of 6.0% per year over the past 10 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 809% to bring the payout ratio under control. EPS is expected to grow by 61% over the next 3 years, which means the dividend may need to be reduced to reach a sustainable payout ratio. Reported Earnings • Feb 21
First half 2024 earnings released: EPS: NZ$0.13 (vs NZ$0.17 in 1H 2023) First half 2024 results: EPS: NZ$0.13 (down from NZ$0.17 in 1H 2023). Revenue: NZ$1.61b (up 24% from 1H 2023). Net income: NZ$174.0m (down 27% from 1H 2023). Profit margin: 11% (down from 18% in 1H 2023). Revenue is expected to decline by 1.5% p.a. on average during the next 3 years, while revenues in the Electric Utilities industry in Oceania are expected to grow by 1.4%. Over the last 3 years on average, earnings per share has fallen by 24% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Announcement • Feb 20
Mercury NZ Limited Announces Ordinary Fully Paid Foreign Exempt NZX Distribution for the Six Months Ended December 31, 2023, Payable on April 2, 2024 Mercury NZ Limited announced ordinary fully paid foreign exempt NZX distribution of NZD 0.10941176 for the six months ended December 31, 2023. Record date is March 14, 2024. Ex-date is March 13, 2024. The dividend will be payable on April 2, 2024. Announcement • Dec 19
Mercury's CFO William Meek to Step Down in 2025 Mercury's Chief Financial Officer, William Meek, has confirmed that after three decades with Mercury and 15 years as CFO, he intends to leave the role at the end of March 2025 to spend more time with family. William has made a huge contribution to the company's success, in particular the consistent performance since the Initial Public Offering and the successful Tilt Renewables and Trustpower retail transactions. Mercury is pleased to have this time to ensure a seamless succession. Announcement • Nov 24
Mercury NZ Limited to Report First Half, 2024 Results on Feb 20, 2024 Mercury NZ Limited announced that they will report first half, 2024 results on Feb 20, 2024 Announcement • Nov 15
Mercury NZ Limited Announces Management Changes Mercury NZ Limited announced Marlene Strawson has decided after eleven years to leave Mercury. The Executive Team will consist of: Vince Hawksworth - Chief Executive; William Meek CFO; Phil Gibson Executive GM Portfolio; Stew Hamilton Executive GM Generation; Craig Neustroski Executive GM Customer; Lucie Drummond Executive GM Sustainability; Fiona Smith Executive GM People Experience and Technology and Nick Pudney Head of Integration. The new structure will come into effect on 7 December 2023. Announcement • Sep 20
Mercury NZ Limited Announces the Retirement of Patrick Strange as a Director Mercury NZ Limited at its annual shareholders' meeting held on 19 September 2023, announced the retirement of Patrick Strange as a Director. Upcoming Dividend • Sep 06
Upcoming dividend of NZ$0.15 per share at 3.8% yield Eligible shareholders must have bought the stock before 13 September 2023. Payment date: 29 September 2023. The company is paying out more than 100% of its profits and is paying out 92% of its cash flow. Trailing yield: 3.8%. Lower than top quartile of Australian dividend payers (7.0%). Lower than average of industry peers (4.6%). New Risk • Aug 22
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 104% Cash payout ratio: 115% Dividend yield: 3.6% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 104% Cash payout ratio: 115% Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (3.8% net profit margin). Buying Opportunity • Jul 28
Now 21% undervalued Over the last 90 days, the stock is up 3.1%. The fair value is estimated to be AU$7.62, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 12% over the last 3 years. Earnings per share has grown by 16%. For the next 3 years, revenue is forecast to decline by 0.9% per annum. Earnings is forecast to grow by 5.1% per annum over the same time period. Announcement • Jul 26
Mercury NZ Limited Announces Director Independence Mercury NZ Limited announced that Adrian Littlewood and Mark Binns will join Mercury's Board with effect from 1 August and 1 September 2023 respectively, the Mercury Board has determined that both Mr. Littlewood and Mr. Binns will be Independent Directors for the purposes of the NZX Listing Rules. Announcement • Jul 14
Mercury NZ Limited Announces Board Changes Mercury NZ Limited announced changes to its Board, with Adrian Littlewood and Mark Binns joining with effect from 1 August and 1 September 2023 respectively, and Patrick Strange confirming his intention to retire at the end of the 2023 Annual Shareholders' Meeting. Mr. Binns was CEO of Meridian Energy from 2012 2017 and before that spent 22 years with Fletcher Building, including 15 years as CEO of the Construction and Infrastructure division. He currently chairs Crown Infrastructure Partners and Hynds Limited and is a director of Auckland International Airport Limited. Mr. Littlewood's executive career included 12 years at Auckland International Airport, nine of these as CEO. Prior to that he held senior roles across strategy, operations, product and marketing with Telecom New Zealand. Previous governance roles include acting as the New Zealand chair of the Australia/New Zealand Leadership Forum, chair of the NZ Airports Association, a director of North Queensland Airports and Tourism Industry Aotearoa. After more than nine years serving on the Board, Dr. Patrick Strange has confirmed his intention to retire with effect from the end of the Annual Shareholders' Meeting on 19 September 2023. Announcement • Jul 13
Mercury NZ Limited, Annual General Meeting, Sep 19, 2023 Mercury NZ Limited, Annual General Meeting, Sep 19, 2023. Buying Opportunity • Jul 13
Now 21% undervalued Over the last 90 days, the stock is up 4.3%. The fair value is estimated to be AU$7.38, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 12% over the last 3 years. Earnings per share has grown by 16%. For the next 3 years, revenue is forecast to decline by 0.8% per annum. Earnings is forecast to grow by 5.7% per annum over the same time period. Announcement • Jun 30
Mercury NZ Limited to Report Fiscal Year 2023 Results on Aug 21, 2023 Mercury NZ Limited announced that they will report fiscal year 2023 results Pre-Market on Aug 21, 2023 New Risk • Jun 20
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 9.9% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by earnings (104% payout ratio). Profit margins are more than 30% lower than last year (10% net profit margin). Shareholders have been diluted in the past year (9.9% increase in shares outstanding). Reported Earnings • Feb 22
First half 2023 earnings released: EPS: NZ$0.17 (vs NZ$0.31 in 1H 2022) First half 2023 results: EPS: NZ$0.17 (down from NZ$0.31 in 1H 2022). Revenue: NZ$1.30b (up 49% from 1H 2022). Net income: NZ$230.0m (down 46% from 1H 2022). Profit margin: 18% (down from 49% in 1H 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to decline by 4.1% p.a. on average during the next 3 years, while revenues in the Electric Utilities industry in Oceania are expected to remain flat. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Announcement • Jan 24
Julia Jack to Leave as Chief Marketing Officer of Mercury NZ Limited Before the End of April 2023 Mercury NZ Limited has announced that Chief Marketing Officer, Julia Jack, will leave the company before the end of April 2023. Ms. Jack joined Mercury in 2016 to assist the transition to a single brand, with additional responsibility for the sales and marketing functions. Ms. Jack leaves to take up an executive role with Kiwibank, subject to RBNZ approval. Announcement • Jan 19
Mercury NZ Limited Announces Stepdown of Dennis Barnes from Board Mercury NZ Limited has acknowledged the announcement that Dennis Barnes, director, has been appointed as the next Chief Executive Officer and Managing Director of Snowy Hydro Limited. Mr. Barnes is expected to take up the role on 1 February 2023. Consequently, Mr. Barnes will step down from the Mercury Board at a time to be determined. Announcement • Dec 20
Mercury NZ Limited to Report First Half, 2023 Results on Feb 21, 2023 Mercury NZ Limited announced that they will report first half, 2023 results on Feb 21, 2023 Buying Opportunity • Dec 06
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 6.2%. The fair value is estimated to be AU$6.54, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 4.2% over the last 3 years. Earnings per share has grown by 11%. For the next 3 years, revenue is forecast to decline by 0.8% per annum. Earnings is also forecast to decline by 12% per annum over the same time period. Buying Opportunity • Nov 03
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 12%. The fair value is estimated to be AU$6.45, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 4.2% over the last 3 years. Earnings per share has grown by 11%. For the next 3 years, revenue is forecast to decline by 0.8% per annum. Earnings is also forecast to decline by 12% per annum over the same time period. Valuation Update With 7 Day Price Move • Oct 31
Investor sentiment improved over the past week After last week's 16% share price gain to AU$5.43, the stock trades at a forward P/E ratio of 46x. Average forward P/E is 29x in the Electric Utilities industry in Oceania. Total returns to shareholders of 35% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at AU$7.29 per share. Recent Insider Transactions • Sep 24
Chief Executive Officer recently bought AU$54k worth of stock On the 20th of September, Vincent James Hawksworth bought around 10k shares on-market at roughly AU$5.35 per share. This transaction amounted to 33% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. This was Vincent's only on-market trade for the last 12 months. Upcoming Dividend • Sep 07
Upcoming dividend of NZ$0.14 per share Eligible shareholders must have bought the stock before 14 September 2022. Payment date: 30 September 2022. Payout ratio is a comfortable 58% but the company is paying out more than the cash it is generating. Trailing yield: 3.3%. Lower than top quartile of Australian dividend payers (6.6%). Lower than average of industry peers (4.3%). Reported Earnings • Aug 17
Full year 2022 earnings: Revenues exceed analyst expectations Full year 2022 results: Revenue: NZ$2.19b (up 7.0% from FY 2021). Net income: NZ$469.0m (up 233% from FY 2021). Profit margin: 21% (up from 6.9% in FY 2021). Revenue exceeded analyst estimates by 19%. Over the next year, revenue is forecast to grow 2.0%, compared to a 4.8% growth forecast for the Electric Utilities industry in Australia. Buying Opportunity • Aug 10
Now 22% undervalued Over the last 90 days, the stock is up 8.7%. The fair value is estimated to be AU$7.25, however this is not to be taken as a buy recommendation but rather should be used as a guide only. For the next 3 years, revenue is forecast to decline by 0.6% per annum. Earnings is also forecast to decline by 8.1% per annum over the same time period. Buying Opportunity • Apr 05
Now 24% undervalued after recent price drop Over the last 90 days, the stock is down 4.5%. The fair value is estimated to be AU$7.43, however this is not to be taken as a buy recommendation but rather should be used as a guide only. For the next 3 years, revenue is forecast to decline by 4.2% per annum. Earnings is also forecast to decline by 16% per annum over the same time period. Upcoming Dividend • Mar 09
Upcoming dividend of NZ$0.094 per share Eligible shareholders must have bought the stock before 16 March 2022. Payment date: 01 April 2022. Payout ratio is a comfortable 57% but the company is paying out more than the cash it is generating. Trailing yield: 3.2%. Lower than top quartile of Australian dividend payers (5.8%). Lower than average of industry peers (3.7%). Reported Earnings • Feb 23
First half 2022 earnings: EPS exceeds analyst expectations while revenues lag behind First half 2022 results: EPS: NZ$0.31 (up from NZ$0.096 in 1H 2021). Revenue: NZ$873.0m (down 7.5% from 1H 2021). Net income: NZ$427.0m (up 229% from 1H 2021). Profit margin: 49% (up from 14% in 1H 2021). Revenue missed analyst estimates by 7.4%. Earnings per share (EPS) exceeded analyst estimates by 3.6%. Over the next year, revenue is expected to shrink by 7.8% compared to a 5.1% decline forecast for the industry in Australia. Over the last 3 years on average, earnings per share has fallen by 1% per year but the company’s share price has increased by 15% per year, which means it is well ahead of earnings. Announcement • Jan 29
Mercury Nz Limited Provides Production Guidance for the Year 2022 Mercury NZ Limited provided production guidance for the Year 2022. For the period, the company expected 150 GWh decrease in full year hydro generation to 3,750 GWh due to dry weather in the Taupo catchment since the end of Q1-FY2022. Buying Opportunity • Jan 28
Now 23% undervalued after recent price drop Over the last 90 days, the stock is down 15%. The fair value is estimated to be NZ$6.57, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 8.5% per annum over the last 3 years. Executive Departure • Oct 03
Independent Non-Executive Director Keith Smith has left the company On the 23rd of September, Keith Smith's tenure as Independent Non-Executive Director ended after 12.4 years in the role. As of June 2021, Keith still personally held 30.16k shares (AU$192k worth at the time). Keith is the only executive to leave the company over the last 12 months. The current median tenure of the management team is 5.25 years. Executive Departure • Sep 29
Independent Non-Executive Director Keith Smith has left the company On the 23rd of September, Keith Smith's tenure as Independent Non-Executive Director ended after 12.4 years in the role. As of June 2021, Keith still personally held 30.16k shares (AU$192k worth at the time). Keith is the only executive to leave the company over the last 12 months. The current median tenure of the management team is 5.17 years. Upcoming Dividend • Sep 07
Upcoming dividend of NZ$0.12 per share Eligible shareholders must have bought the stock before 14 September 2021. Payment date: 30 September 2021. Trailing yield: 2.5%. Lower than top quartile of Australian dividend payers (5.1%). Lower than average of industry peers (4.0%). Reported Earnings • Aug 22
Full year 2021 earnings released: EPS NZ$0.10 (vs NZ$0.15 in FY 2020) The company reported a soft full year result with weaker earnings and profit margins, although revenues improved. Full year 2021 results: Revenue: NZ$2.05b (up 16% from FY 2020). Net income: NZ$141.0m (down 33% from FY 2020). Profit margin: 6.9% (down from 12% in FY 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 9% per year but the company’s share price has increased by 28% per year, which means it is well ahead of earnings. Announcement • Aug 04
Mercury NZ Limited (NZSE:MCY) completed the acquisition of New Zealand business of Tilt Renewables Limited (NZSE:TLT). Mercury NZ Limited (NZSE:MCY) entered into a Scheme Implementation Agreement to acquire New Zealand business of Tilt Renewables Limited (NZSE:TLT) from March 14, 2021. Mercury NZ made the acquisition for an enterprise valuation of approximately NZD 770 million. The acquisition will be funded from the sale of Mercury’s 19.9% Tilt shareholding, worth NZD 585 million and net debt of NZD 185 million. As per amendment on April 16, 2021, The acquisition of the New Zealand operations by Mercury will be funded from the sale of Mercury’s 19.9% Tilt shareholding, worth NZD 608 million and net debt of NZD 189 million. In a related deal, Powering Australian Renewables agreed to acquire Tilt Renewables Limited. As of July 15, 2021, Tilt Renewables shareholder has approved the transaction. As of July 23, 2021, Tilt Renewables Limited, advises that the High Court has made final orders approving the Scheme of Arrangement under which Mercury NZ Limited (Mercury) will acquire Tilt Renewables' New Zealand business. The proposed transaction is expected to complete on August 3, 2021. John Brewster, Lynda Tully, Nik Lukic and Cassandra Wee of Ashurst Australia acted as legal advisors to Tilt Renewables Limited.
Mercury NZ Limited (NZSE:MCY) completed the acquisition of New Zealand business of Tilt Renewables Limited (NZSE:TLT) on August 3, 2021. Recent Insider Transactions • May 19
Chief Executive Officer recently bought AU$64k worth of stock On the 10th of May, Vincent Hawksworth bought around 10k shares on-market at roughly AU$6.41 per share. In the last 3 months, they made an even bigger purchase worth AU$120k. Vincent has been a buyer over the last 12 months, purchasing a net total of AU$184k worth in shares. Recent Insider Transactions • May 11
General Manager of People & Performance recently sold AU$351k worth of stock On the 7th of May, Marlene Strawson sold around 55k shares on-market at roughly AU$6.39 per share. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of AU$98k more than they bought in the last 12 months. Recent Insider Transactions • Apr 28
Independent Non-Executive Chairman recently bought AU$115k worth of stock On the 19th of April, Prudence Flacks bought around 19k shares on-market at roughly AU$6.21 per share. In the last 3 months, there was an even bigger purchase from another insider worth AU$120k. This was Prudence's only on-market trade for the last 12 months. Recent Insider Transactions • Mar 26
Chief Executive Officer recently bought AU$120k worth of stock On the 18th of March, Vincent Hawksworth bought around 20k shares on-market at roughly AU$6.00 per share. This was the largest purchase by an insider in the last 3 months. This was Vincent's only on-market trade for the last 12 months. Reported Earnings • Feb 25
First half 2021 earnings released: EPS NZ$0.095 (vs NZ$0.061 in 1H 2020) The company reported a strong first half result with improved earnings, revenues and profit margins. First half 2021 results: Revenue: NZ$944.0m (up 1.7% from 1H 2020). Net income: NZ$130.0m (up 57% from 1H 2020). Profit margin: 14% (up from 8.9% in 1H 2020). The increase in margin was primarily driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has increased by 23% per year, which means it is tracking significantly ahead of earnings growth. Analyst Estimate Surprise Post Earnings • Feb 25
Revenue and earnings beat expectations Revenue exceeded analyst estimates by 39%. Earnings per share (EPS) also surpassed analyst estimates by 38%. Over the next year, revenue is forecast to decline by -5.2% while the Electric Utilities industry in Australia is not expected to grow. Is New 90 Day High Low • Feb 25
New 90-day low: AU$5.53 The company is down 5.0% from its price of AU$5.82 on 27 November 2020. The Australian market is up 4.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Electric Utilities industry, which is flat over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is AU$4.44 per share. Is New 90 Day High Low • Jan 07
New 90-day high: AU$6.88 The company is up 38% from its price of AU$4.98 on 09 October 2020. The Australian market is up 9.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Electric Utilities industry, which is up 17% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is AU$5.15 per share. Valuation Update With 7 Day Price Move • Dec 18
Investor sentiment deteriorated over the past week After last week's 16% share price decline to NZ$5.70, the stock is trading at a trailing P/E ratio of 39x, down from the previous P/E ratio of 46.2x. This compares to an average P/E of 44x in the Electric Utilities industry in Oceania. Total returns to shareholders over the past three years are 116%. Is New 90 Day High Low • Dec 08
New 90-day high: AU$6.29 The company is up 26% from its price of AU$4.99 on 09 September 2020. The Australian market is up 11% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Electric Utilities industry, which is up 12% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is AU$4.46 per share. Is New 90 Day High Low • Nov 10
New 90-day high: AU$5.22 The company is up 19% from its price of AU$4.39 on 12 August 2020. The Australian market is up 4.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Electric Utilities industry, which is up 11% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is AU$4.11 per share. Announcement • Nov 05
Macquarie Infrastructure Partners V, L.P. acquired an unknown stake in Hudson Ranch 1 from Mercury NZ Limited (NZSE:MCY) for NZD 40 million. Macquarie Infrastructure Partners V, L.P. acquired an unknown stake in Hudson Ranch 1 from Mercury NZ Limited (NZSE:MCY) for NZD 40 million on November 4, 2020.
Macquarie Infrastructure Partners V, L.P. completed the acquisition of an unknown stake in Hudson Ranch 1 from Mercury NZ Limited (NZSE:MCY) on November 4, 2020. Is New 90 Day High Low • Oct 13
New 90-day high: AU$5.10 The company is up 11% from its price of AU$4.59 on 15 July 2020. The Australian market is up 5.0% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Electric Utilities industry, which is up 15% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is AU$4.25 per share. Announcement • Oct 07
Mercury NZ Limited to Report First Half, 2021 Results on Feb 26, 2021 Mercury NZ Limited announced that they will report first half, 2021 results on Feb 26, 2021 Announcement • Jul 07
Mercury NZ Limited to Report Fiscal Year 2020 Results on Aug 18, 2020 Mercury NZ Limited announced that they will report fiscal year 2020 results at 9:00 AM, Tonga Standard Time on Aug 18, 2020 
