Electricity distributor Marlborough Lines has sold its half share of neighbouring Nelson Electricity for $26.7 million to joint venture partner Network Tasman.
The stake, valued at $16.4m in the lines company’s 2024 accounts, had been held since 1996.
In a statement, Marlborough Lines chair Phil Robinson said: “After a long period of successful joint ownership, Marlborough Lines has made the decision to sell its 50% shareholding to its joint shareholder, Network Tasman.
“Marlborough Lines will utilise the proceeds from the sale to invest in Marlborough based renewable generation opportunities, including those currently underway through its subsidiary Energy Marlborough Limited.”
Network Tasman said it would fund the purchase through debt and the deal would not affect prices charged to customers.
A 12% increase in half-year operating profit for Contact Energy was turned into a reduced bottom line by negative contract valuations, the electricity generator and retailer reported on Monday.
“The result has been a demonstration of the agility of Contact and the market to respond to challenging market conditions when unable to rely on the cheap and plentiful natural gas of the past,” said chief executive Mike Fuge.
Contact’s revenue for the six months to December grew 30.7% to $1.7 billion, while earnings before interest, tax, depreciation, amortisation, and financial instruments grew 12% to $404m.
Net profit was $142m, down from $153m, owing to a negative $61m change in the valuation of financial instruments.
The company declared a partially imputed dividend of 16c a share, or $127.7m, up from 14c for the same period a year earlier.
Listed transport company Freightways has reported solid revenue and profit growth in a challenging economic environment. Its revenue rose 6.7% to $662.1 million in the six months ended December 31, while net profit gained 9.5% to $44.7m, compared with the previous year.
Freightways said the express package division did especially well, with market share and pricing gains.
It said ‘same customer’ activity levels were still negative in New Zealand compared with the previous period, although there had been falling interest rates and improved business confidence.
“We remain cautious about any rapid recovery in New Zealand and to a lesser extent Australia. Volume in the half-year was as expected, and we expect that it will be a slow grind for the economy to provide some organic growth in New Zealand in [the second half].
“Our focus remains on restoring margins for both divisions in FY25 and FY26 as modest organic growth occurs, and market share gains are realised.”
NZX-listed hydro generator Manawa, which Contact Energy wants to acquire in a deal worth $1.86 billion, has lowered its earnings guidance due to very dry conditions in January and February.
Manawa said on Monday it now expected normalised ebitdaf (excluding the cost of the Contact deal) for the year to March 31, 2025, to be between $80 million and $95m. That was down on previous guidance of between $95m and $115m.
As a result, Infratil – which owns 51% of Manawa – also reduced its 2025 full-year earnings guidance, lowering its proportionate operational ebitdaf range to between $951m and $991m, from earlier guidance of between $960m and $1b.