Contact Power lifts first-half revenue 72% because it advantages from robust hydro technology

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Contact is investing in geothermal and wind projects as it seeks to increase its production of renewable electricity.

CHRIS MARSHALL/Stuff

Contact is investing in geothermal and wind initiatives because it seeks to extend its manufacturing of renewable electrical energy.

Contact Power lifted its first-half revenue 72 per cent because it benefited from robust hydroelectricity technology within the South Island, which is cheaper for it to supply.

The corporate posted a revenue of $134 million within the six months to the tip of December, up from $78m in the identical interval a 12 months earlier. Income slipped 0.2 per cent to $1.14 billion, whereas working bills fell 8.7 per cent to $817m.

Contact produces greater than 20 per cent of the nation’s electrical energy from hydro stations within the South Island, and geothermal and gas-fired thermal energy stations within the North Island. Hydro technology was up 6 per cent compared with the identical interval a 12 months earlier, which decreased the necessity for dearer thermal technology.

“We’ve seen double-digit progress in our working earnings and revenue off the again of a interval of robust hydro technology,” mentioned chief govt Mike Fuge.

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“When it rains, working earnings enhance as we don’t need to run dearer thermal technology, however money circulation is impacted as we retailer the fuel we bought to be used sooner or later.”

Contact is shifting away from thermal technology, and has decreased its dividend to spend money on renewable electrical energy. It’s growing the Tauhara geothermal plant, extending its geothermal consents at Wairakei, is growing a geothermal energy station at Te Huka, and has secured land entry rights for wind initiatives throughout New Zealand.

The corporate can pay shareholders a first-half dividend of 14 cents per share, unchanged from the identical interval a 12 months earlier. It goals to pay 35 cents per share for the complete monetary 12 months.

Shares in Contact edged up 0.5 per cent to $8.10 in mid-afternoon buying and selling on the NZX on Monday.



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