MCY Mercury NZ ( MRP Mighty River Power)

[huxley]

I emailed Mercury Investor Relations and they advise.....

Shares held by the company as Treasury Stock are not taken into account for dividends and voting.

As per the Companies Act in respect of shares held as Treasury Stock (Section 67B):

“… the company shall not – Exercise any voting rights attaching to the share[s]; or
Make or receive any distributions authorised or payable in respect of the share[s]”

Regards,

TIM THOMPSON
HEAD OF TREASURY & INVESTOR RELATIONS

So this means that the dividend payout will be made to fewer shares (or held as a cash reserve possibly). I'm looking forward to a juicy divvy this year.

Thanks for that and it makes sense since it basically increases the eps and therefore the value of the shares still on issue. It’s the mechanism of choice in markets which cannot pass on imputation so is more tax efficient than a dividend.

[fish]

https://www.reuters.com/article/us-g...-idUSKCN1IP0LE .

Forgetting green policies it is clear that the world is moving out of fossil fuels in a big way-wind and solar are already far cheaper than gas.

I have been really impressed by how some companies-mercury in particular-are positioning themselves for the future.
Cannot understand why such a negative view was taken of small investments the mcy board have taken to help enable them look at the future for nz-eg battery storage close to auckland,tilt reneweables,electric bikes,smart technologies.

The move to electric cars may start gaining momentum within the next 12 months and I suspect mercury will be assisting this

[fish]

Nice earnings upgrade for this financial year on basis of increased rainfall(maybe one of the few positive effects of global warming for mcy shareholders)

[value_investor]

Nice earnings upgrade for this financial year on basis of increased rainfall(maybe one of the few positive effects of global warming for mcy shareholders)

I think the initial guidance from them is intentionally low, the operating earnings last year was 523m. I'm interested in what the fuel tax will do in Auckland and whether it will shift people quicker to the electric side. I know that 11.5 cents isn't a lot but it plays a big part psychologically. We'll be seeing numbers at the pump we've never seen before.

Getting use to 2.30-2.40 for 91 everywhere, even thought it's quiet minimal on a yearly basis for most.

[fish]

I think the initial guidance from them is intentionally low, the operating earnings last year was 523m. I'm interested in what the fuel tax will do in Auckland and whether it will shift people quicker to the electric side. I know that 11.5 cents isn't a lot but it plays a big part psychologically. We'll be seeing numbers at the pump we've never seen before.

Getting use to 2.30-2.40 for 91 everywhere, even thought it's quiet minimal on a yearly basis for most.

The earnings upgrade annouced yesterday was stated to be on the basis of a big increase in rainfall.
Higher temperatures slightly reducing demand
.
Mercury are placing themselves well for the future

[Jantar]

.... I know that 11.5 cents isn't a lot but it plays a big part psychologically. We'll be seeing numbers at the pump we've never seen before.

Getting use to 2.30-2.40 for 91 everywhere, even thought it's quiet minimal on a yearly basis for most.

I see very little effect in Auckland. The fuel companies are already doing what they have done any other time a regional or targeted fuel tax has been applied. They simply spread it over the entire country with the South Island being hit the hardest, and Auckland continuing to get the cheapest fuel in the country.

[blackcap]

I see very little effect in Auckland. The fuel companies are already doing what they have done any other time a regional or targeted fuel tax has been applied. They simply spread it over the entire country with the South Island being hit the hardest, and Auckland continuing to get the cheapest fuel in the country.

Exactly, the tax was never going to be applied to Auckland soley. Fuel companies will price where they can get the largest margins and if that means SI subsidies Auckland then so be it.

[Snoopy]

I have been really impressed by how some companies-mercury in particular-are positioning themselves for the future.
Cannot understand why such a negative view was taken of small investments the MCY board have taken to help enable them look at the future for nz-eg battery storage close to Auckland, tilt reneweables ,electric bikes, smart technologies.

The move to electric cars may start gaining momentum within the next 12 months and I suspect mercury will be assisting this.

Mercury shareholders might be interested in reading the back page of the NBR dated Friday 22nd June 2018. The gist of the article is that Mercury have bought themselves a position in 'Tilt Renewables', but have been refused board representation so don't have any control over their new investment. Furthermore 'Tilt' will be looking for more cash soon and Mercury will have to stump up with no control over how the money is spent.

The Author suggests that given the above, Mercury has overpaid for Tilt by coughing up well above the market price for their passive cornerstone stake.

Not mentioned in the article was Mercury's previous attempt to crack the international power station development market under previous CEO Doug Heffernon. This involved leveraging their own geothermal power station development experience by backing geothermal projects in the United States, Europe and Chile. This initiative was quickly snuffed out by incoming CEO Fraser Whineray. So are we now we are staring at a 'back to the future' initiative, except this time Mercury has no control of what will happen?

SNOOPY

[fish]

I thought infratil had the majority of shares so they will always have the say in Tilt.
This article is only for Paid content so I cant access but clearly its opinion.
The fact is that mercury have taken a position in Tilt and with current mega-profits being made by mercury they can afford it.

[Snoopy]

I thought iInfratil had the majority of shares so they will always have the say in Tilt.

Correct, Infratil controls Tilt, and they were buyers for the TECT Trust's Tilt shares that Mercury ended up buying. But obviously Infatil wer not buyer at the price that Mercury was prepared to pay.

This article is only for Paid content so I cant access but clearly its opinion.

Many local libraries stock the NBR these days!

The fact is that mercury have taken a position in Tilt and with current mega-profits being made by mercury they can afford it.

Mercury can certainly afford it. Mercury have consent to build wind farms. Tilt could do that for them. But I understood that more geothermal generation was more favoured for NZ going forwards? I think another undercurrent of the article was that Mercury had so much cashflow, they may not be spending it wisely,

SNOOPY