12 Aug 2019

Sale of two businesses helps Contact lift profit

10:48 am on 12 August 2019

The power company has more than doubled its net profit for the year after some cost cutting and the shedding two of its businesses.

140814. Photo Contact Energy. Te Mihi power station

Contact Energy's net profit for the year was $345m, up from $132m the previous year. Photo: Contact Energy

It reported a net profit of $345 million, up from $132m the previous year, with the sale of its Taranaki gas storage facility and its Rockgas LPG business the main contributors to the increase.

Excluding those businesses, the company's profit rose 52 percent to $170m.

The result contrasted the 13 percent fall in profit Contact reported in 2018.

Contact chief executive Dennis Barnes said he was happy with the work the company had done in the past 12 months to improve its performance.

"It is pleasing to report a strong financial result for FY19 following the transformation programme we have successfully executed in recent years which included sector leading reductions to operating and capital expenditure, a deepening of the relationship with our customers and the simplification of our portfolio of assets."

The result saw Contact lift the dividend paid to shareholders from 32 cents per share in 2018 to 39 cents per share this year.