Photo: RNZ / Nate McKinnon
Contact Energy has reported a strong first-half net profit and is making progress on its renewable energy developments.
The large diversified energy company said the result reflected a strong underlying performance on pricing and its strategic plan, which set it up for the balance of the year.
Key numbers for the six months ended December compared with a year ago:
- Net profit $153.5m vs $7m net loss
- Revenue $1.21b vs $994m
- Underlying profit $354m vs $246m
- Interim dividend 14 cents a share vs 14 cps
"We have a clear strategy, strong balance sheet with supportive shareholders and stand ready to deliver on the opportunities in front of us to lead the decarbonisation of the New Zealand economy over the next decade," Contact chief executive Mike Fuge said.
Underlying full year net profit was expected to be $620m.
Contact also expected Rio Tinto to sign a long-term agreement to keep the the aluminium smelter at Tiwai open.
Fuge said the new agreement would be long-term, at a fair price, materially above the current pricing, and include a demand response to mitigate dry-year risk.
"A new long-term agreement would de-risk investment in new renewable generation, contribute to energy security and help to preserve an important export industry, supporting growth and decarbonisation of the New Zealand economy."
Fuge said remediation work at the Tauhara geothermal development was progressing, with the site expected to come online in the third quarter of the year 2024 at the initial design capacity of around 152 megawatt (MW), with Te Huka 3 on track to follow in the fourth quarter.
An illustration of the Tauhara project. Photo: Supplied
He said work was also underway to prepare for a final investment decision on the replacement of the 65-year-old Wairakei, as well as the 100MW North Island battery storage project and the Kowhai Park solar development.
The company was also making progress on decarbonising its portfolio.
Fuge said retail energy pricing was improving with total connections up 20,000 on the year earlier period. The company had also set aside $1m to directly support customers suffering from energy hardship.