New Zealand:

Flat earnings for Mighty River Power as milestone float looms (National Business Review)

New Zealand state-owned electricity generator and retailer Mighty River Power (MRP) has reported flat underlying earnings for the year to June 30, with a tax-paid profit of $162.7 million, just $500,000 above that of the previous year.

The profit announcement doubles as a milestone event in the progress towards the government's intention to float up to 49% in the company.

While construction of its next major geothermal plant, the 82 MWe Ngatamariki development, is on track, difficulties experienced with drilling two of three injection wells have led to an $18 million increase in the contingency fund on the $466 million project.

However, MRP says this will not affect the project's economics significantly, with "real long-run marginal cost" remaining competitive at below $80 per Megawatt hour.

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