Contact Energy's net profit climbs to $423 million, up 62 percent on last year
The period includes the acquisition of Manawa Energy, which Contact said contributed to the uplift in earnings.
Contact Energy, the New Zealand energy company, has announced a significant increase in its net profit for the year ending June 2026, soaring to an all-time high of $423 million, up by 62% from the previous year's $331 million. This impressive growth can be attributed to the acquisition of Manawa Energy, increased renewable generation, and lower fuel costs, as well as an improved market environment.
The company's underlying profit, which excludes a one-off gain from Ahuroa Gas Storage, rose by a remarkable 62% from $261 million to $423 million. Operating free cash flow also surged by 49% to $648 million, a direct result of the Manawa acquisition, enhanced operating performance, and a positive shift in working capital.
Looking towards the future, Contact Energy is exploring a potential data centre development in Stratford, Taranaki, in partnership with CDC data centres, a company partly owned by NZX-listed infrastructure investor Infratil. The proposed 250-megawatt facility would complement the recently retired Taranaki combined cycle gas power plant and would be backed by long-term contracts sourced from Contact's portfolio of geothermal, wind, and solar generation projects.
Stratford's appeal to Contact Energy lies in its existing grid connection, robust fibre infrastructure, and already consented battery storage capacity, with 500 MW of grid-scale batteries already approved. Despite the early stage of the proposal, the development remains contingent on securing consents, customers, and financing before any final investment decision is made.
Written by urgent.news from RNZ Business's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
