Contact Energy earnings increase but profit dips 3%
Contact Energy has reported a 3% fall in net profit to $150.3 million, although underlying earnings were up slightly due to increased retail sales and prices.
Earnings before one-off items and changes in the value of financial instruments came in at $150.9 million for the year to June, up 1% on the $149.8 million reported last year.
Full year revenue was up 3% to $2.23 billion.
While national electricity demand remained static, Contact said its retail sales volumes increased by 8% to 8,254 GWh predominantly due to a 31% increase in “time of use” sales.
This saw a flatter demand profile, allowing better utilisation of generation capacity and lower costs of supply.
“The increase in Time of Use sales has allowed Contact to reduce its exposure to wholesale spot sales in a period of weak wholesale prices,” the company said.
Average retail prices increased 4% on full year 2010.
Earnings before interest, tax, depreciation, amortisation and financials (ebitdaf) increased 3% to $441.4 million for the full year, with second half ebitdaf up 7% to 216 million.
Earnings from Contact’s core electricity business increased 8% on the second half due to improvement in flexibility with Ahuroa gas storage and Stratford gas peakers commissioned, and gas levels falling 23%.
Contact, which generates nearly a third of New Zealand's electricity, declared a final dividend of 12c per share, compared with 14c last year, taking its total distribution to 23c for the full year
Duncan Bridgeman
Mon, 22 Aug 2011
Mon, 22 Aug 2011
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Contact Energy earnings increase but profit dips 3%
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