MCY Mercury NZ ( MRP Mighty River Power)

[trader_jackson]

Yes special dividend was a bit of a (good) surprise, everything else average at best... but I still think long term MRP is best positioned power company (with the exception of maybe MEL)

[Snoopy]

Yes special dividend was a bit of a (good) surprise, everything else average at best... but I still think long term MRP is best positioned power company (with the exception of maybe MEL)

One thing that caught my eye was the increase in the carrying value of assets profit of $504m before tax. In a time of relatively flat demand, this struck me as an extraordinary amount to once again pull out of thin air. It's MRP's biggest asset revaluation profit in eight years.

If you believe the Property plant and equipment sensitivity notes, +$504m is equivalent to revaluing all industry profits up by over 6%. Given that this was a 30th June figure, made before the subsequently announced closure of two large thermal stations (Contact's Otahuhu B and Genesis Energy's Rankine units at Huntly), we MRP shareholders could be in line for another large revaluation bonus next year. That's because the baseload renewable power stations that do remain become consummately more valuable!

SNOOPY