Highlights
Strong progress in FY22 on delivery of our Contact26 strategy, which is focussed on leading New Zealand's decarbonisation by connecting customers with our renewable development pipeline:
- A $300m investment approved to develop a new 51.4MW (0.43TWh p.a.) geothermal power station at Te Huka, near Taupō, targeting onstream in Q4 2024
- Good progress on the 168MW (1.40TWh p.a.) Tauhara geothermal power station development which will supply around 3.5 percent of New Zealand's total electricity demand by the end of next year
- Growing the development pipeline by securing land access rights to support the development of wind projects through our Roaring40s partnership and entering a joint-venture agreement with Lightsource bp to initially develop up to 200MW of solar
- Ongoing strategic review of thermal assets supporting the announcement of the closure of Te Rapa next year, on track to more than halve our FY21 scope 1 and 2 carbon emissions by 2026
- Strong endorsement of Contact's refreshed retail offering over the past 12 months
- More than 50,000 new customers chose Contact for electricity, gas, or broadband services.
- Supported customers by limiting average price increases to households to 1.2 percent on FY21, despite sustained higher wholesale prices and inflationary pressures.
- Saw tangible commitment to our new Good to be Home' brand platform with 3 months free energy for more than 1,000 new parents who enjoyed over 2 million hours of energy as they welcomed the newest Kiwis into Aotearoa
- Committed to a new partnership with Women's Refuge
New Zealand renewable energy company Contact Energy ( Contact') released its full year financial results for the 12 months to 30 June 2022 today.
Contact CEO Mike Fuge said the company had delivered a solid financial performance in the FY22 financial year and was investing in line with its strategy to lead New Zealand's decarbonisation efforts.
Financial performance
Contact reported a net profit of $182m, down $5m from a year ago on lower operating earnings (EBITDAF) and higher depreciation, partially offset by lower interest costs reflecting the capitalisation of interest to major growth capital projects, lower tax on earnings and favourable movements to the fair value of financial instruments against the prior year.
EBITDAF decreased by $16m to $537m, down 3 percent on the prior year on lower wholesale electricity prices, lower sales and rising gas and carbon unit costs, which were partially offset by more renewable generation.
Operating free cash flow for the period decreased from $371m to $325m, down 12 percent year-on-year primarily on lower operating earnings, additional working capital investments in carbon, higher stay-in-business capital expenditure, and higher cash tax paid on stronger earnings in prior periods.
The Board approved a final ordinary dividend of 21 cents per share (imputed by up to 19 cents per share for qualifying shareholders) to be paid on 27 September 2022; taking the annual dividend declared for FY22 to 35 cents per share which is in line with the prior year.
Mr Fuge said: "Contact has delivered a solid financial performance despite unpredictable and volatile trading conditions."
"This unpredictability has been compounded by a combination of global energy supply and security concerns, exacerbated by the impact of Russia's invasion of Ukraine, with subsequent unprecedented increases in international energy prices, including coal, which has also coincided with a reduction in gas output from the domestic gas market.
"These thermal fuel challenges further support the acceleration of our Contact26 strategy, and we continue to progress a range of renewable energy projects across the country in our aim to lead New Zealand's decarbonisation. Our retail business has grown its market share in electricity and broadband through innovative retail plans and steady pricing."
