Contact Energy (ASX:CEN) Monthly Operating Report Highlights
Operational Achievements
Contact Energy’s mass market electricity and gas sales for December 2024 reached 274GWh, slightly declining from 279GWh in December 2023. The company’s mass market netback improved significantly to $156.56/MWh compared to $145.23/MWh a year earlier.
The Wholesale business saw contracted electricity sales total 699GWh, up from 692GWh in December 2023. The electricity and steam net revenue rose to $98.75/MWh from $96.02/MWh in the previous year. Total electricity generated climbed to 765GWh, a notable increase from 692GWh in December 2023. The total unit generation cost decreased to $30.68/MWh, down from $40.03/MWh the previous year, reflecting improved operational efficiency.
Progress on Major Projects
The Te Huka 3 project achieved a completion rate of 98.5%, slightly below the target of 100%. The Battery Energy Storage System (BESS) project reached 39% completion against a target of 41%, indicating ongoing development on both fronts.
As of January 20, 2025, the wholesale price for Otahuhu futures settled at $174/MWh, up notably from $124/MWh at the end of December 2024. This trend suggests a recovery in electricity pricing which may benefit future revenues.
Environmental and Efficiency Updates
Contact Energy reported greenhouse gas emissions from generation assets at 132kt CO2-e, lower than the previous year’s figure of 144kt CO2-e. The GHG intensity of generation improved to 0.060 kt CO2-e per GWh. Additionally, the company’s initiatives included planting 80 native trees and trapping 643 pests, reinforcing their commitment to environmental management.
Shelley Hollingsworth, Investor Relations & Strategy Manager, stated, “Our steady operational performance and commitment to sustainability position us well for continued growth in a competitive energy market.”
Future Outlook
With a contracted gas volume of 4.7PJ for the next 12 months and continued progress on key projects, Contact Energy is focused on strengthening its market position whilst enhancing operational efficiencies. The company anticipates improvements in electricity demand, driven by strategic initiatives and the scaling of renewable energy sources.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
This article was generated using GPT-4o mini, a Large Language Model (LLM), to generate summaries of investing news. While AI is generating the content, we know better than to blindly trust our future robot overlords, and every article is edited and fact-checked by an editor holding the appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content of everything published by The Capital Club.