Mercury NZ trims losses after Morningstar highlights resilient Q1 performance

Mercury NZ

14/10/2026 03:35

** Mercury NZ MCY.NZ shares fell as much as 1.3% to NZ$6.69 before trimming losses, and were last down 0.6% in late-afternoon Wellington trade
** Electricity retailer posts Q1 trading margin up 19% YoY, as new wind and geothermal supply offset weak hydro output from dry conditions
** Morningstar says one of the driest quarters on record cut hydro generation 24%, or 332 gigawatt-hours, but total generation slipped only 1%
** Investment research firm adds, derivative gains helped results, though underlying performance was solid and highlighted the value of a diversified generation fleet
** Says lake storage is about 25% below average and likely El Niño-driven low rainfall creates hydro output headwinds for fiscal 2027
** "We leave our forecasts largely unchanged" and maintains its NZ$6.8 fair value estimate - Morningstar
** Stock up 4% YTD

(Reporting by Kumar Tanishk in Bengaluru)
((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk http://www.x.com/thatstanishk;))