Contact Energy has reported an impressive first-half net profit of $153.5 million, showcasing a significant turnaround from the $7 million net loss in the same period last year. The company attributes this success to robust underlying performance on pricing and the effective execution of its strategic plan, positioning it favorably for the rest of the year.
Positive Financial Indicators
Net profit: $153.5m (up from $7m net loss)
Revenue: $1.21b (up from $994m)
Underlying profit: $354m (up from $246m)
Interim dividend: 14 cents a share (consistent with 14 cps)
Contact Energy CEO Mike Fuge emphasized the company’s clear strategy and strong balance sheet, expressing readiness to lead the decarbonization of New Zealand’s economy in the coming decade. The underlying full-year net profit is projected to reach $620 million.
Future Developments and Investments
The company anticipates a long-term agreement with Rio Tinto to keep the Tiwai aluminum smelter operational. Fuge highlighted the importance of this agreement, describing it as a crucial step towards de-risking investments in new renewable generation and contributing to energy security.
Progress is evident in the Tauhara geothermal development, set to come online in Q3 2024 at an initial capacity of approximately 152 megawatts (MW). Additionally, Te Huka 3 is on track for Q4. The company is gearing up for a final investment decision on the replacement of the aging Wairakei, the 100MW North Island battery storage project, and the Kowhai Park solar development.
Commitment to Decarbonization and Customer Support
Contact Energy is actively working on decarbonizing its portfolio and notes improvements in retail energy pricing, with total connections up 20,000 from the previous year. The company has allocated $1 million to directly support customers facing energy hardships.
With these strides in renewable energy, Contact Energy is not only boosting its financial performance but also contributing significantly to the sustainable development of New Zealand’s energy market.
Source：radionz.co.nz
