Wednesday, November 4, 2015

New Zealand: Mighty River Power Fails to Find a Buyer for Geothermal Assets in Chile

MRP flags Chilean geothermal costs, keeps guidance unchanged (sharechat)

New Zealand electricity generator and retailer Mighty River Power (MRP) has signaled it may face additional costs associated with its Chilean geothermal assets, for which it has failed to find a buyer and may require spending on site remediation, chief executive Fraser Whineray told the company's annual meeting in Auckland.

Reporting on MRP's decision to get out of international geothermal developments, Whineray said its German assets had been sold but no buyer had emerged for its Chilean interests.

"We may need to remediate sites where geothermal exploration activity has been undertaken, which could result in one-off provisioning in this financial year," he said, giving no sense of the size of that potential cost and promising an update at the half-year earnings announcement in February.

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