![\"Wind](\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2026\/08\/landscape-image-featuring-wind-turbines-Z2VOUJIPTJEB5KGNCGIHBLTVEE.jpg\")
<\/p>\nContact Energy has posted a 62% jump in annual profit to $423 million, with operating earnings topping $1 billion for the first time after absorbing rival Manawa Energy.<\/p>\n
The power company reported its full-year results on Monday, showing EBITDAF of $1.011 billion for the year ended June 30, up 31% from $774m the previous year. Net profit rose from $261m.<\/p>\n
The surge followed Contact’s acquisition of Manawa Energy, completed in July 2025, which added 2.4 terawatt hours of renewable generation. Total output for the year had been 98% renewable.<\/p>\n
The energy supplier\u2019s 62% jump from last year\u2019s profits was helped by its renewable generation push. (Source: 1News)<\/p>\n
Contact Energy chief executive Mike Fuge said the 2026 financial year had been “transformational” for the company.<\/p>\n
“The strong performance of the combined entity has set us up well as we move forward to execute the Contact31+ strategy,” Fuge said.<\/p>\n
Operating free cash flow climbed 49% to $648m, driven by the acquisition, improved performance and a positive shift in working capital. Contact raised $575m of new equity in February to reduce debt and fund future renewable projects.<\/p>\n
Average wholesale electricity prices fell 11% to $140 per megawatt hour as hydro inflows ran at 118 per cent of average, a sharp contrast to the tighter conditions of the previous year, it said. Contact spent less on gas purchases as fuel availability improved, compared with tighter conditions in 2025.<\/p>\n
<\/p>\n
Wind turbines. (Source: istock.com)<\/p>\n
Renewable build and energy security<\/p>\n
Contact brought its first 100-megawatt grid-scale battery online at Glenbrook, near Auckland, in March and started construction on a second 200-megawatt unit at the same site, expected to be operational by early 2028.<\/p>\n
The company signed a 10-year agreement with Genesis Energy in August 2025 for 50 megawatts of firming capacity at Huntly, aimed at keeping the Rankine coal-and-gas units available during dry years.<\/p>\n
Contact also entered a seven-year gas supply deal with the Ministry of Business, Innovation and Employment to provide gas to about 100 schools, hospitals and public entities, backed by a supply agreement with Greymouth Gas.<\/p>\n
Fuge said securing gas for the medium term would “support security of supply for essential institutions like schools and hospitals, as well as Kiwi businesses and homes”.<\/p>\n
On the generation side, consent had been granted in April for a proposed Southland Wind Farm expected to produce more than 1.2 terawatt hours a year.<\/p>\n
Construction of the Te Mihi Stage 2 geothermal plant continued, with the plant scheduled to come online in the third quarter of 2027. Commissioning had begun on the K\u014dwhai Park solar farm, and a second solar project at Glorit reached financial close in June.<\/p>\n
![\"Contact](\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2026\/08\/taranaki-farmland-mt-taranaki-DHVJPPF7AFFOBGWCYWHIQVKK5U.jpg\")
<\/p>\n
Contact separately announced on Monday it was working with CDC Data Centres to explore building a 250-megawatt data centre at Stratford in Taranaki. (Source: istock.com)<\/p>\n
Data centre eyed for Taranaki<\/p>\n
Contact separately announced on Monday it was working with CDC Data Centres to explore building a 250-megawatt data centre at Stratford in Taranaki.<\/p>\n
The companies plan to seek resource consent for the facility. It would be backed by co-located battery storage and powered under long-term contract by new renewable generation.<\/p>\n
“We believe Stratford shapes as an ideal location to explore a digital hub powered by renewable energy from where the local Taranaki economy can thrive,” Fuge said.<\/p>\n
The site already has 500 megawatts of grid-scale batteries consented and a grid connection in place. Contact’s joint venture with Lightsource bp is also looking at a 150-megawatt solar farm with integrated battery storage nearby.<\/p>\n
The morning’s headlines in 90 seconds, including St John braces for another hectic day, and a Brazilian footballers goal celebration goes bad. (Source: 1News)<\/p>\n","protected":false},"excerpt":{"rendered":"Contact Energy has posted a 62% jump in annual profit to $423 million, with operating earnings topping $1…\n","protected":false},"author":2,"featured_media":564543,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[138,1667,111,139,69],"class_list":["post-564542","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business","tag-energy","tag-new-zealand","tag-newzealand","tag-nz"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/564542","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=564542"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/564542\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/564543"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=564542"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=564542"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=564542"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}