MCY Mercury NZ ( MRP Mighty River Power)

[Harvey Specter]

Wolf - yes, they will be relying on their Dams while the plant is down. Only two weeks during a low demand period so not a major.

[Wolf]

GENERAL: MRP: Joint venture power station temporarily withdrawn

Please note the following news release from the Nga Awa Purua Joint Venture
relating to maintenance at the Nga Awa Purua Geothermal Power Station:

Nga Awa Purua Joint Venture has temporarily withdrawn its geothermal power
station from the market to carry out repairs on the steam turbine, and is
scheduled to have the station near Taupo operating again within 1-2 weeks.

Joint Venture Chair, William Meek, said that during a planned outage for
routine maintenance, inspections found that the turbine blades were being
affected by geothermal fluids used to power the plant. The turbine was
modified to allow ongoing operation, reducing operating capacity to about
95%.

"This shut means we can open up the turbine so that we can properly assess
the issue to increase reliability of the plant through until permanent
repairs can be made in about 15-18 months."

He said the maintenance outage would not have a material financial impact,
with revenue losses mitigated by current wholesale market conditions. The
current estimated repair and turbine blade replacement cost to the joint
venture is expected to be about $15 million in FY2015.

About Nga Awa Purua:

- Nga Awa Purua station commissioned March 2010, with rating of 138MW (above
original design by 8MW)
- Jointly owned: Mighty River Power 65% / Tauhara North No.2 Trust 35%
- Plant availability since commissioning 96%, well above international
benchmarks.

I dont see why they are going to do a permanent in 15-18 months, how about they do it now while "He said the maintenance outage would not have a material financial impact,
with revenue losses mitigated by current wholesale market conditions."

[MAC]

Geothermal power station down... Dam. Tossing up between putting them in the bottom draw for a year or so or throwing them out.

These things are transitory Wolf and will happen from time to time. Geothermal turbines can be prone to chemistry issues and all turbines have their issues, cavitation with hydro, burners with gas turbines.

The secret to staying in the power business is diversification and MRP have a big fleet, if one unit requires major maintenance it's not a big issue, would be different for a startup company with only one power station.

[Harvey Specter]

These things are transitory Wolf and will happen from time to time.

Exactly - these guys have revenue close to $2B a year from a range of different generators and a big retail base.

Dont sweat the small stuff. The market isn't, its up.

[couta1]

MRP under $2 oh dear for us holders

[silu]

MRP under $2 oh dear for us holders

I want to average down for ages but the trend is still going south.

[rbel038]

The turbine they could just be pulling out damaged blades at this time to get the thing back up and running reliably. Perhaps going back to the designers to redesign and manufacture and install in the future as the "permenant solution"

Of course pulling blades however lowers the efficiency of the turbine in the meantime

[Vaygor1]

"...the maintenance outage would not have a material financial impact,with revenue losses mitigated by current wholesale market conditions. Thecurrent estimated repair and turbine blade replacement cost to the jointventure is expected to be about $15 million in FY2015."

MRP own 65% of the asset, so cost to MRP is 0.65 x $15M = $9.75M
This paltry sum together with the statement '...would not have a material financial impact' means I am astonished they even announced it.
This type of issue/event is just business as usual for power stations, refineries, and petrochemical plants throughout NZ and the world.

Have bought more at $2.00 today.

[GR8DAY]

........bought more at $2.01, gotta be a healthy dividend return on that?? (anyone worked it out?)

[Vaygor1]

........bought more at $2.01, gotta be a healthy dividend return on that?? (anyone worked it out?)

I make it out as a 50% ROI over a 15 month period (equals approx 40%/annum) plus dividends. This is based on MRP = $3/share buy Feb 2015 which I think will occur.

Edit.. sorry GR8DAY, my response above is on Capital Gain not Dividend Return. Can look this up later in the week.