Contact (NZX:CEN): What is its latest monthly report all about?

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Contact (NZX:CEN): What is its latest monthly report all about?

 Contact (NZX:CEN): What is its latest monthly report all about?
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Highlights

  • Contact Energy released its operating report for November 2021 on Tuesday.
  • The Group’s customer business recorded mass market electricity and gas sales of 299 GWh in November 2021.
  • CEN plans to transition NZ into a fully renewable electricity system. 

Contact Energy Limited (NZX:CEN;ASX:CEN) is the largest privately owned energy retailer and distributor in New Zealand. The Company released its monthly operating report for November 2021 on Tuesday.

The Group stated that its customer business noted mass market electricity and gas sales of 299 GWh in November this year, the same as in November 2020.

Contact’s details

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

Some of the highlights of the firm’s wholesale business for November 2021 included the following:

  • Contracted wholesale electricity sales including that sold to the customer business, equalled 655 GWh, up from 616 GWh in November 2020.
  • Electricity and steam net revenue stood at $81.73/MWh, up from $73.49/MWh on pcp.
  • Electricity generated stood at 702 GWh, up from 676 GWh on pcp.
  • Unit generation cost that also includes acquired generation stood at $28.32/MWh, down from $36.61/MWh on pcp.

The Group’s South Island-controlled storage stood at 132% of the mean, while North Island-controlled storage stood at 125% of mean as at 6 December 2021.

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Further, CEN’s contracted gas volume including contracted swaps for the next 12 months stands at 14.9PJ as of 1 November 2021.

Transforming NZ into 100% renewable electricity generation

Contact released a report last month that summarises advantages of creating a solution for the industry to cope with the withdrawal of thermal electricity production.

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Contact’s proposal focuses on how the Company can expedite the transition from fossil fuel electricity generation without interrupting the secure and affordable supply of electricity to Kiwis, as per CEN’s CEO, Mike Fuge.

DO READ: Are these 5 NZX mid-cap aiming to become large-cap stocks?

The Company plans to establish a new entity, Thermal Co, which could own, control and withdraw all of country’s key thermal production assets amid new renewable production. The move would lower carbon emissions by 1.2 million tonnes annually by 2030.

On 14 December, at the time of writing, CEN was trading flat at $7.72.

Bottom Line

Transitioning to a 100% renewable electricity system can unlock many prospects for NZ. Renewable electricity will play a crucial part in maintaining decarbonisation across the economy.

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

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