Image source: Shutterstock

Highlights

  • CEN’s H1FY25 EBITDAF increased by 11.6% YoY, while operating free cash flow fell by 20.69% YoY.
  • The company completed an AUD 400 million green bond issuance to support investment in eligible green assets under its Sustainable Finance Framework.
  • CEN acquired an additional ~8% stake in Forest Partners in January 2025, expanding its long-term sustainable forestry investment.

Contact Energy Limited (NZX:CEN) is a New Zealand-based integrated energy company engaged in electricity generation and retailing through its Wholesale and Retail segments.

In the first half of the financial year 2025 (H1FY25), the company’s EBITDAF increased by 11.6% YoY to NZD 404 million; however, operating free cash flow fell by 20.69% YoY to NZD 138 million due to the improvement in operating result being offset by relatively higher levels of working capital and increased interest paid after the completion of Tauhara, along with the related reduction in capitalisation. Growth capital expenditure (cash) fell by 15.6% YoY to NZD 179 million in H1FY25, down from NZD 212 million in H1FY24. During the reported period, the company announced a dividend payout of NZD 128 million.

Business update:

In June 2025, CEN announced that Deion Campbell would join its Board as a non-independent director, effective upon the implementation of the Manawa Energy Limited acquisition. Additionally, the company’s Wholesale business recorded 768 GWh in contracted electricity sales for May 2025, down slightly from 778 GWh in May 2024.

Company Outlook

CEN had completed an AUD 400 million fixed-rate green bond issuance under its Australian Wholesale Medium Term Note programme, with proceeds intended for investment in green assets in line with its Sustainable Finance Framework. The company continues to invest in renewable energy projects using various technologies to support energy market stability and keep electricity prices low.

CEN acquired an additional ~8% interest in Forest Partners in January 2025, which resulted in an increased investment in its long-term sustainable forestry investment partnership.

Share Performance

The stock has witnessed a downside of ~0.44% and ~1.65% over the last one week and one month, respectively. Moreover, it is trading above the average 52-week high price of NZD 9.8 and 52-week
low price of NZD 7.86.

On 30 June 2025, CEN shares closed at AUD 9 per share.

Support and Resistance Summary

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 30 June 2025. The reference data in this report has been partly sourced from EODHD/Others.

Technical Indicators Defined:

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.