Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Third year of flat earnings for Contact Energy

Third year of flat earnings for Contact Energy

Aug. 22 (BusinessDesk) – Wet weather, intense retail competition and the late commissioning of new peaking plant contributed to the third year in a row of flat earnings for Contact Energy Ltd.

The country’s largest listed energy company reported a statutory after tax profit of $150.3 million in the year ended June 30, down 2.8% on the previous year’s result, and exactly in line with predictions from brokers Forsyth Barr.

Contact is cutting its final dividend by two cents a share to 12 cents, leaving payout for the year at 23 cents, two cents lower than the previous year, but still representing a 100% payout of underlying earnings, which were roughly the same as net profit, at $150.9 million. The dividend will be paid as a tax-free bonus issue, with capacity for buyback from shareholders by Contact.

The result was achieved on a 3.1% increase in total revenue to $2.23 billion, to produce a 3.4% improvement in earnings before interest, depreciation, tax, depreciation amortisation and changes in the fair value of financial instruments, of $441.42 million.

Chief executive Dennis Barnes is pointing to a stronger year in 2012, when the full benefit of investments in peaking plant at Stratford and gas storage at the nearby Ahuroa facility will be apparent.

While the Ahuroa facility allowed Contact not to renew a take or pay gas contract, and had stored the equivalent of $45 million of gas underground during the year, it had only one month’s benefit from the Stratford peakers, which will allow Contact to meet demand peaks using fast-start plant rather than its combined cycle gas turbine plants, which are not designed for use as peakers.

“The availability of Ahuroa gas storage and the Strake peaker place Contact in an improved position to increase earnings, even if wet conditions were to continue to prevail in 2012,” said Barnes in a statement to the NZX.

The company lost large numbers of retail customers during the year, but had increased its share of the industrial “time of use” market. It was concentrating now on construction of the new Te Mihi geothermal power station, which will augment and partially replace the aging Wairakei geothermal plant.

The shares were unchanged at $5.02 in trading on Friday, and have dropped 18% this year.


© Scoop Media

Business Headlines | Sci-Tech Headlines


FIRST Union: Do Shareholders Realise Marsden Point Conversion Could Cost More Than Half A Billion Dollars?

FIRST Union, the union representing workers at Refining NZ, are querying whether shareholders voting on Friday on whether to convert the Marsden Point refinery to an import-only terminal realise the conversion could cost $650-700 million dollars... More>>

Civil Contractors: Massive Rebound In Civil Construction Business Confidence

New Zealand’s civil construction industry is riding a massive rebound in post-pandemic business confidence – but this may be undermined by skills shortages, which continue to be the industry’s number one challenge... More>>

Energy: Feeling Our Way Towards Hydrogen - Tina Schirr

Right now hydrogen is getting a lot of attention. Many countries are focusing on producing hydrogen for fuel, or procuring it, or planning for its future use... More>>

Transport: July 2021 New Vehicle Registrations Boosted By EV Rebate Scheme
Motor Industry Association Chief Executive David Crawford says that July 2021 sales of new vehicles were boosted by the recently introduced rebate scheme. July 2021 registrations were 15,053 units compared to 12,263 units for July 2020... More>>

ASB: New Support Finder Tool Helps Connect Customers With Thousands In Government Support

ASB research alongside benefit numbers from the Ministry of Social Development shows an increased number of Kiwis are struggling financially, and many may not be aware they’re eligible for government support... More>>

Housing: New Home Consents Continue To Break Records

A record 44,299 new homes were consented in the year ended June 2021, Stats NZ said today. “The annual number of new homes consented rose again in the June 2021 year, the fourth consecutive month of rises,” construction statistics manager Michael Heslop said... More>>