Contact Energy has bounced back into profit in the first half of the year as it lowered costs in a flat energy market.
Contact Energy says expenses were lower because of warm weather reducing demand, while above-average rainfall filled hydro lakes resulting in cheaper power. Photo: 123rf
The company, which generates about a third of the country's power, reported a net after tax profit of $96 million for the six months ended December, compared with the previous year's $116m loss, which included more than $250m of asset writedowns.
Leaving aside one-off costs, Contact's underlying profit was up 12 percent to $82m.
The company said expenses were lower because of warm weather reducing demand, while above-average rainfall filled hydro lakes resulting in cheaper power. National energy demand was 2 percent lower and Contact's sales fell just under 1 percent.
"In a competitive market, delivering strong operational performance and providing value for customers and shareholders remains the focus," said Dennis Barnes, Contact's Chief Executive.
He said Contact lost about 1100 customers in the half year as the number of retailers and discounting remained at a high level.
Mr Barnes said Contact had revamped its IT systems and in the future expected to be able to offer better service to its customers as well as lower costs.
He said they are looking to team up with other companies to broaden the range of services and goods to consumers.