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Highlights

  • CEN posted a 12% YoY rise in EBITDAF to NZD 404 million, led by geothermal output.
  • The company signed a 7-year gas deal with Greymouth Gas NZ, effective October 2025.
  • CEN targets 98% renewable electricity generation and net zero operations by 2035.

Established in 1996, Contact Energy Limited (NZX:CEN) is a New Zealand-based integrated energy company engaged in electricity generation, wholesale gas distribution, and retailing of electricity and gas.

In the first half of the financial year 2025 (1HFY25), CEN reported a net profit of NZD 142 million, down 7% YoY. Operating earnings (EBITDAF) rose 12% YoY to NZD 404 million, driven by increased geothermal output, improved pricing, and elevated CFDs, partially offset by higher gas costs and one-off acquisition expenses. Operating free cash flow declined 21% YoY to NZD 138 million, impacted by higher working capital and interest expenses after the commissioning of Tauhara.

Contact Energy declared a 16 cents per share interim dividend for 1HFY25, up 14% YoY, with a 2% discount available under its dividend reinvestment plan.

Business update

In May 2025, the company announced that it had entered into an agreement with Methanex to buy approximately 2.8PJ of gas to help address record-low hydro inflows and falling gas availability, enabling continued operation of the Taranaki Combined Cycle plant and Stratford units before TCC’s planned closure post-winter.

On 4 August 2025, the company inked a seven-year gas supply agreement with Greymouth Gas New Zealand Limited, effective from 1 October 2025 and extendable to 2035, to supply up to 7PJ of gas annually.

Company outlook

 Contact expects the Stratford gas peakers to contribute 200–300GWh annually, enabling its generation mix to reach approximately 98% renewables in normal hydrology years. The company remains committed to achieving net zero generation operations by 2035.  The CEN maintained its FY25 EBITDAF guidance at NZD 790 million, excluding Manawa acquisition-related costs—up from a previous forecast of NZD 770 million.

The company is focused on growing its portfolio of renewable generation assets and has invested more than NZD 2 billion in the last four years in the critical energy infrastructure.

Share performance of CEN

CEN shares declined by 0.22% to close at AUD 9.17 on 6 August 2025. Over the past year, the stock has gained 7.16%, while rising 7.67% over nine months. CEN has also recorded increases of 1.56% over the past three months, 1.11% over one month, and 0.44% in the past week. However, the stock is down 1.72% over six months and has fallen 3.89% year-to-date.
The 52-week high for CEN is AUD 9.80, reached on 30 December 2024, while the 52-week low is AUD 7.86, recorded on 23 September 2024.

Support and Resistance Summary

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 06 August 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.