Quarterly Operational Update

Quarterly Operational Update for the three months ended 31 December 2024.

QUARTERLY HIGHLIGHTS

> ELECTRICITY FUTURES REMAIN ELEVATED - spot prices low in Q2, but futures prices remain firm.
> TAUPO STORAGE MANAGED - despite dry conditions, providing a strong Q3 portfolio position.
> CONSTRUCTION UNDERWAY AT KAIWAIKAWE WIND FARM - 221 GWh per annum near Dargaville.

COMMENTARY

MARKET SUMMARY

77th percentile national hydro inflows and lower electricity demand during the quarter were reflected in lower spot electricity prices averaging $44/MWh in Auckland. Whilst forward prices eased slightly from last quarter’s outlook, they remain elevated at $174/MWh in Auckland for financial years 2025 to 2027 as at 31st December 2024. National demand was 2.1% lower for the quarter relative to PCP. After normalising demand for industrial demand response initiated during Q1, demand increased by 0.7% versus the PCP.

PORTFOLIO MANAGEMENT HAS RESULTED IN A GOOD STARTING TAUPŌ LAKE LEVEL FOR Q3, DESPITE DRIER CONDITIONS

Lower Waikato catchment inflows of 22nd percentile over the quarter saw Q2 hydro generation reduce to 872 GWh (56 GWh, 6% lower than PCP). Taupō hydro storage was conserved to end the quarter with an above average lake level. This was achieved by reducing hydro generation while spot electricity prices were low relative to forward electricity prices in the second half of 2025.

Wind generation was 44 GWh or 8% lower for the quarter relative to PCP because of lower than average wind. Planned maintenance outages at Nga Awa Purua and Rotokawa stations have resulted in 55 GWh lower geothermal generation than PCP at 589 GWh. Commercial & Industrial yield growth (physical and end-user CfDs) was $15/MWh higher for the quarter relative to PCP because of contract repricing to a sustained higher electricity forward curve.

Telco and mobile connections increased by 25k relative to PCP and 6k versus the last quarter due to cross-sell focus and various customer offers.

MERCURY COMMITS TO KAIWAIKAWE WIND FARM IN NORTHLAND

Mercury confirmed it will construct a $287m wind farm near Dargaville, bringing the total commitment to new renewables to more than $1b over two years. The 77 MW and 221 GWh per annum is expected to reach full generation by late CY26.

[For Operational Statistics and Charts, please refer to the attached]

ENDS

Howard Thomas
General Counsel and Company Secretary
Mercury NZ Limited

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