Wednesday, August 28, 2013

Normanomics and Mighty River–Mightily wrong

It is no doubt highly predictable that the our friend from Queensland would find the MRP result – a profit increase of 69% on last year – an outcome he couldn’t resist having a poke at. And he’s all over it – money denied the taxpayer, dividends they “really” own and so on.

Of course he fails to note:

  • that as an SOE it never produced a growth result like this;
  • that last year was probably the toughest yet to sell energy in;
  • that sales grew only slowly;
  • that generation was down; thus,
  • productivity and the MRP diversification paid off in spades.

The taxpayer does in fact still own 51% of MRP and numerous of the investors both institutional and individual are in fact NZ taxpayers.

Biggest killer was the share price being spooked by the threat of Control Freak Central running all over the electricity market in a reform which would have Stalin clapping.

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