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Highlights
- Contact Energy performed above expectations in FY21.
- The Group launched a new platform in January 2022 “It’s good to be home”.
- CEN has taken many initiatives to fulfil NZ’s decarbonisation goal and protect it from climate change.
Contact Energy Limited (NZX:CEN;ASX:CEN) is the biggest energy generator and retailer in NZ. The Group produced 8.4 terawatt hours of electricity from geothermal, gas and hydro in 2021 and handled more than 550K customer connections.
Contact delivered strong returns for shareholders in FY21, performing above expectations after navigating the exit of major energy users, rainfall issues and gas supply-related challenges.
Image source: © 2022 Kalkine Media®, Data source- EODHD/Others
The Group made mass electricity and gas sales of 288GWh from its customer business and made wholesale electricity sales of 644GWh from its wholesale business in December 2021.
Let’s take a look at some of the new launches done by the Group on various fronts and its progress till date.
New platform launch
Contact has taken many programs like providing 3 free power hours via the Good Nights initiative, constructing a new renewable Tauhara geothermal plant, etc., to enhance the quality of home life for all Kiwis.
CEN had launched a new platform in January 2022, called “It’s good to be home” on the belief that home is the best place in the world, which includes individual homes and the collective home of Aotearoa.
DO READ: How are 4 NZX energy stocks doing amid NZ’s green energy initiatives?
The platform launch comes as a part of CEN’s emphasis on the business to expand its obligations to the environment, community, and people all through 2022.
Advertising agency Special produced the new campaign that will be distributed online, via radio, out-of-home and social.
CEN’s progress on lowering emissions
Contact understands the significance of safeguarding Aotearoa from climate change and has taken many measures to support a greener and cleaner future for the country.
On the climate change front, Contact reduced its emissions from generation assets from 167 kt CO2-e in Q2 FY21 to 118 kt CO2-e in Q2 FY22. It also lowered its greenhouse gas intensity of generation to 0.058 kt CO2-e/GWh in the second quarter of FY22 (0.091 kt CO2-e/GWh in Q2 FY21).
DO READ: Contact (NZX:CEN): What is its latest monthly report all about?
CEN has launched the Contact26 strategy with the objective of connecting customers with its renewable energy development pipeline. The Group is also examining the possibility of hydrogen production in the lower South Island and the progress on Tauhara geothermal power station in the central North Island.
ALSO READ: Significance of 2022 in the battle against climate change
Contact has raised $400 million in equity for capital investment to progress on renewable generation developments. The capital raise will allow CEN to execute nearly $800 million of additional projects.
Flexible thermal generation is required as NZ’s electricity sector steps towards attaining the country’s goal to become 100% renewable.
On 4 February, at the time of writing, CEN was trading at $8.06, down 0.49%.
Bottom Line
Contact has refreshed its strategy and is well placed for growth as it leads NZ’s decarbonisation.
(NOTE: Currency is reported in NZ Dollar unless stated otherwise)
