Power generator and retailer Mercury said it had revised its operating earnings guidance upward for the current year to June thanks to an increase in hydro generation and a strong trading performance.
The company now expects to report earnings before interest, tax, depreciation, amortisation and financial instruments (EBITDAF) of $535 million, up from a previous guidance of $505m.
The company's EBITDAF for the June 2020 year came to $494m, down $12m on the prior year.
In an update for the December quarter, Mercury said hydrology and thermal fuel concerns saw the full-year 2021 futures price increase from $122/MWh at Ōtāhuhu and $111/MWh at Benmore at the start of the quarter to $136/MWh and $121/MWh, respectively.
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Advertise with NZME.Longer-dated futures also increased, with the 2022 futures price lifting from $100/MWh to $119/MWh at Ōtāhuhu and from $85/MWh to $101/MWh at Benmore.
In the following quarter, Mercury said electricity futures prices rallied after Rio Tinto announced that it planned to keep its majority-owned Tiwai Point aluminium smelter open until 2024.
Separately, Mercury chief executive Vince Hawksworth announced changes to his executive structure, with seven executive roles reporting to him.
The roles are the current positions of chief financial officer, chief marketing officer and general manager people and performance and newly created roles of general manager generation, general manager portfolio, general manager sustainability and general manager customer.
Disestablished executive roles are general manager retail and digital, general manager hydro/wholesale, general manager geothermal and safety, and general manager corporate affairs.
The confirmed executive roles are chief financial officer William Meek; chief marketing officer Julia Jack; general manager people and performance Marlene Strawson; and current general manager hydro/wholesale, Phil Gibson, who has been appointed general manager portfolio. The other roles are subject to a recruitment process.
Mercury's result for the December 31 half year will be released on February 23.
The company's shares last traded at $6.97, having gained 30 per cent over the past 12 months.