Contact Energy Limited

Overview

Contact Energy was formed in February 1996 when it acquired electricity generation and gas assets from state-owned electricity generator ECNZ. Subsequent expansion put the company in the forefront of electricity generators in NZ. It is strongly positioned in wholesale gas distribution, gas retailing and electricity retailing.

Performance

The following information was extracted from Contact Energy Limited's full year results, released 10 August 2026:

Strategic highlights

• Completed Manawa acquisition and integration; adding 2.4TWh renewable output in-year.v

• Added new flexibility with first 100MW battery online. Started construction on another 200MW.

• Expanded flexible supply agreement to support NZ Steel’s electric arc furnace.

• Progressed construction of Te Mihi Stage 2 geothermal and advanced Tauhara 2 drilling.

• Entered commissioning of Kōwhai Park solar. Confirmed Glorit solar investment.

• Secured consent for Southland Wind Farm with a pathway to supply NZAS potline 4.

• Contracted 50MW HFO to manage dry year risk and support security of supply.

• Entered All-of-Government gas supply agreement, for schools, hospitals and public entities.

• Supported 165,000 retail customers to take advantage of off-peak energy.vi

• Launched The Good Initiative; more than 60 community groups supported.

Delivering financial performance through Manawa integration and renewable investment

Contact Energy has reported net profit of $423m in FY26 and operating earnings (EBITDAF) of $1,011m. The period includes the acquisition of Manawa Energy from 11 July 2025, which contributed to the uplift in earnings.

The improved operating result was driven by a significant lift in renewable output, up 2.9TWh including PPAs, with total output 98% renewable in FY26. This reflected the addition of the Manawa hydro assets and its contracted PPAs (wind and geothermal), which together contributed 2.4TWh, along with a full period of generation at Contact’s new Te Huka 3 geothermal plant. Higher renewable output supported increased contracted sales.

With national hydro inflows in FY26 at 118% of mean, and New Zealand’s hydro storage ending the period 135% of mean, market conditions contrasted sharply with those of FY25. Average pricing on electricity sold was lower at $140/MWh, down 11% from $157/MWh in FY25, reflecting the normalisation of market conditions from a challenging FY25. CFD sales were at lower prices, reflecting generation costs. Contact spent less on gas purchases and acquired generation, costs of which were more expensive in FY25 when fuel was scarce.

The acquired Manawa irrigation business contributed to a lift in other income. In FY25 other income was affected by losses on the sale of excess gas to Methanex. Operating costs reflected the combined operations of Contact and Manawa. Cost-reduction synergies of $28m have been secured on a run-rate basis, 100% of target, with $22m recognised in FY26 within other operating costs.