Photo: RNZ / Nate McKinnon
Contact Energy’s half-year profit is up 44 percent, despite a 5 percent dip in revenue.
The company has made a first half net profit $205 million in the six months ended December, with underlying profit up 24 percent to half a billion dollars ($500m).
Contact was also in a trading halt until Tuesday, as it looked to raise $525m to advance investment into new battery, solar and geothermal developments.
Key numbers for the six months ended December 2025 compared with a year earlier:
- Net profit $205.0 vs $142.4m
- Revenue $1.62b vs $1.71b
- Underlying profit $500m vs $404m
- Interim dividend 16 cents a share vs 16 cps
Contact said the improved underlying profit result was driven by a significant lift in renewable generation, with an output of 97 percent renewable energy in the first half (1H26).
“1H26 was transformational, with the completion of the Manawa acquisition and the welcoming of its people and assets to Contact,” Fuge said, referring to last year’s near $2b takeover of the generation company.
“The strong performance of the combined entity set us up well for the year ahead as we take significant steps to execute the Contact31+ strategy.”
As part of that strategy, the company’s planned to raise $525m* with potential to increase its renewable energy generation.
This included funding for development of a Tauhara 2 steamfield, the Glenbrook battery 2.0 and its investment in the Glorit solar farm.
The proceeds were also expected to accelerate development pipeline opportunities.
“We already we have plans for another $2.4b of renewable energy projects, and we will continue to invest in building this country.”
Fuge said the company was expanding to meet future demand.
“Contact is taking significant steps to ensure its readiness to support New Zealand’s growing electricity demand, with 3-5TWh (terawatt hours) of new grid demand expected in the next five years,” Fuge said.
“We’re investing in the infrastructure required to support a more renewable, resilient and affordable energy future for New Zealand.
“I think New Zealand can be incredibly proud of where they’ve got to on the renewable energy transition,” Fuge said.
“And I think for the country, the most important thing is that we continue to build the infrastructure that keeps this country resilient, and as well as that, we look to decarbonise those areas of the economy which are nowhere near 50 percent renewable yet.
“And I think that’s where we now have to turn our focus – really focus on the big things that kind of make a real difference, rather than the last 2 or 3 percent.”
Offers to buy the rest of King Country Energy
Contact also separately announced it had made an offer to purchase the remaining 25 percent of King Country Energy from King Country Trust for $47m, which would give it full ownership if the the regional generator. The payment would be made by way of a new issue of Contact shares to the Trust.
Contact expected to make a full year underlying profit of $965m, with a full year dividend of 40 cents per share.
*Capital raise details
Contact planned to raise $450m with an issue of about 51.4m of new ordinary shares, representing about 5.2 percent of current issued capital, at a placement price of $8.75 per new share, which represented a discount of 7.2 percent of the last traded price, excluding the dividend.
Retail Offer
Contact intended to raise $75m through a non-underwritten retail offer of new shares to eligible existing shareholders in New Zealand and Australia, with the ability to scale applications, or accept over subscriptions at Contact’s.
The new shares to be issued at the lower of the placement price or a 2.5 percent discount to the five-day volume Weighted Average Price over the five-trading day period ending on the 6 March closing date of the offer.
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