Contact (NZX:CEN): How did it perform in September month?

Highlights 

  • Contact Energy released its operating report for September 2021 on Monday.
  • The Group’s customer business recorded mass market electricity and gas sales of 389 GWh in September 2021.
  • Contact wants to grow renewable electricity demand and eliminate thermal generation.

Contact Energy Limited (NZX:CEN;ASX:CEN) is the largest privately owned energy firm in New Zealand. On 18 October, Contact Energy released an operating report for September 2021.

The Group revealed that its customer business recorded mass market electricity and gas sales of 389 GWh in September this year compared to 398 GWh in the same month in 2020.

Some of the highlights of Contact’s wholesale business operations for the month of September included the following:

  • Contracted wholesale electricity sales including that sold to the customer business totalled 690 GWh in September, down from 725 GWh in September 2020.
  • Electricity and steam net revenue stood at 95.10/MWh, up from $83.78/MWh on pcp.
  • Electricity generated was 751 GWh, down from 831 GWh on pcp.
  • Unit generation cost that also includes acquired generation stood at $38.48/MWh, up from $37.59/MWh on pcp.

Contact’s performance

Image source: © 2021 Kalkine Media, Data source- Refinitiv

As of 11 October 2021, Contact also disclosed that South Island-controlled storage stood at 141% of the mean, while North Island controlled storage stood at 115% of the mean.

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The Group’s contracted gas volumes stood at 13.78PJ as of 14 October 2021.

New contracts signed to grow renewable electricity demand

On 5 October, the energy business inked two new contracts with Pan Pac Forest Products, a forestry products manufacturer, and Oji Fibre Solutions, a paper company to generate renewable electricity.

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How did Contact (NZX: CEN) perform in September month?

Pan Pac and Oji will receive a portion of their power needs from Contact until 2034. The Major Electricity Users Group conducted a buying process that resulted in new electricity agreements. This will aid its members in securing long-term electricity supply agreements.

RELATED READ: How would Contact’s (NZX:CEN) latest deal drive renewable electricity demand?

Contact Energy intends to create long-term power purchase agreements and increase its renewable electricity demand by reducing reliance on thermal generation. It seeks to encourage new electricity demand and undertake a variety of pro-environmental initiatives.

On 18 October, CEN ended the trading session flat at $8.07.

Bottom Line

Contact Energy recognises the importance of the electricity sector in reducing carbon emissions and subsequently minimising climate change across the NZ economy. The Group plans to merge New Zealand’s thermal generation arrangements into one entity.

(NOTE: Currency is reported in NZ Dollar unless stated otherwise)

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