A Mixed Bag for Contact Energy in First Half of 2025
Contact Energy, a leading New Zealand energy company, has released its financial results for the first half of 2025, revealing a 7% decline in net profit. Despite this, the company’s operating earnings have seen a significant 12% increase to $404 million, driven by improved performance in geothermal generation and elevated Contracts for Difference in support of short-term supply conditions.
The decline in net profit can be attributed to higher gas and acquired generation costs, as well as losses on the sale of excess gas. However, the company’s renewable generation profile has expanded with the commissioning of two new geothermal plants, which is expected to contribute to higher operating earnings in the full year.
Renewable Growth and New Agreements
Contact Energy’s growth strategy has been bolstered by the commissioning of two new geothermal plants, which has expanded its renewable generation profile. The company has also secured new long-term agreements with Fonterra and the New Zealand Aluminium Smelter, providing a stable foundation for its future growth.
These agreements demonstrate Contact Energy’s commitment to supporting the growth of key industries in New Zealand, while also driving its own growth and expansion. With its diversified renewable energy portfolio and strong customer relationships, the company is well-positioned to deliver higher operating earnings in the full year.
A Bright Outlook Ahead
While the first half of 2025 has presented some challenges, Contact Energy remains optimistic about its future prospects. The company’s focus on renewable energy and its commitment to supporting key industries in New Zealand position it for long-term success. As the energy landscape continues to evolve, Contact Energy is well-equipped to adapt and thrive in a changing market.
Key Highlights
- 7% decline in net profit for the first half of 2025
- 12% increase in operating earnings to $404 million
- Commissioning of two new geothermal plants
- New long-term agreements with Fonterra and the New Zealand Aluminium Smelter
- Strong focus on renewable energy and customer relationships