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Contact Energy underlying earnings edge up


Monday 22nd August 2011

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Contact Energy's underlying full year earnings after tax edged up to $150.9 million, as new developments improved the operational flexibility of the company's thermal generation.

The result for the year to the end of June was up 0.7 percent from $149.8m the year before, with revenue up 3.1 percent to $2.23 billion.

Reported net profit was down 2.8 percent to $150.5m, while Contact Energy is to pay a final distribution of 12c per share, taking the full year payout to 23cps, down 2c from a year before.

Benefits were already accruing from the restoration of generation portfolio flexibility, the company said today.

That new flexibility was due to the extraction phase of the Ahuroa gas storage facility which was commissioned in February, followed by the Stratford gas-fired peaker plant.

"The new assets have improved the operational flexibility of Contact’s thermal generation," Contact Energy chief executive Dennis Barnes said.

"As a result costs have been reduced in the second half of the year when conditions were wet and spot prices were low."

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