Morningstar | Metrix Sold, Now Mercury Reinvesting in Moaty Electricity Generation Business
Mercury NZ is a renewable electricity generator accounting for more than 15% of New Zealand's total electricity output. We rate the firm as having a narrow economic moat because of cost advantages from its difficult-to-replace hydro and geothermal generation assets and scale in the oligopolistic retail electricity market. The regulatory environment has been favourable and the market is dominated by four major electricity companies, providing an attractive landscape supportive of solid cash flow and returns. Normalisation of rainfall is an earnings headwind after record hydro generation in fiscal 2018. Nonetheless, the underlying outlook is improving, as the tightening wholesale electricity market should drive stronger generation earnings and allow for retail price rises in time. Mercury's earnings from fiscal 2019 will also benefit from unfavourable interest-rate hedges rolling off.Mercury NZ is engaged in the investment, development and producing of electricity from renewable and other energy sources, selling of energy and energy related services and products to retail and wholesale customers. As of June 30 2013, Co. had 388,000 electric customers.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.
Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
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