Electricity generator Mercury lowered its full-year profit guidance as it expects dry weather to crimp its hydro generation while wholesale prices remain high. “We have carefully managed our way through a difficult period of low inflows into the Waikato hydro system, following sustained record low inflows beginning September 2019,” said chief executive Vince Hawksworth. “Lake management will continue to be key as we head into winter.”READ MORE:* Mercury raises profit forecast as spot market, water levels improve* Covid-19 won't stop Mercury shareholders getting bigger dividend* Electricity generator Mercury blames $21m profit drop and earnings downgrade on dry conditionsUpstream gas supply constraints are having a pronounced effect on the wholesale electricity market, he said. Mercury expects wholesale electricity prices to remain elevated for the remainder of financial year, based on indications from electricity futures on the ASX. The payment represents 40 per cent of its forecast full-year dividend of 17 cents, which is 7.6 per cent higher than last year’s payment.

Source: Stuff February 22, 2021 20:50 UTC