Latest / Best of Business / Andrew Harvey-Green: Forsyth Barr equity analyst on Contact Energy reporting record earnings

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Andrew Harvey-Green: Forsyth Barr equity analyst on Contact Energy reporting record earnings · Best of Business

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  Speaker 2: So Contact Energy has reported a record net profit of
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  Speaker 2: four hundred and twenty three million dollars. That is up
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  Speaker 2: nearly twenty eight percent on last year. Fullsyth Bar Senior
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  Speaker 2: equity analyst Andrew Harvey Green is with us now, hy
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  Speaker 2: Andrew Hi Heaver. Is that about what you were expecting?
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  Speaker 3: Yes, it is, and there are I guess two main
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  Speaker 3: reasons for why we have seen such a big increase.
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  Speaker 3: The main reason is that earlier in this financial year,
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  Speaker 3: Contact Energy are quite manure energy, which you may recall.
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  Speaker 3: And then secondly, when we looked back at the last
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  Speaker 3: previous financial year and that one end of June twenty
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  Speaker 3: twenty five that was heavily impacted by the winter twenty
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  Speaker 3: twenty four. So what we've seen this year is thermal
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  Speaker 3: generation costs have gone down a lot, which has helped
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  Speaker 3: the bottom line.
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  Speaker 2: How do you like the idea of that data center
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  Speaker 2: partnership in Taranaki.
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  Speaker 3: Yeah, I'm actually quite positive about that for a couple
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  Speaker 3: of reasons. Really, I guess for the partner they've got CDC,
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  Speaker 3: probably the best Australasian data center developer. They've got a
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  Speaker 3: great track record, they've got the customers. The site that
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  Speaker 3: Contact Energy has there is also a very good one.
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  Speaker 3: So you've got the grid connection ready to go, you've
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  Speaker 3: got Farber connections ready to go, and obviously our Contact
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  Speaker 3: brings to the party the generation side of things as well.
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  Speaker 3: So you know, from a New Zealand's Ink story, I'm
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  Speaker 3: actually pretty positive around what data centers could do and
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  Speaker 3: I think this is a positive step in the right direction.
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  Speaker 2: Any take on whether we should be expecting lower power prices, well.
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  Speaker 3: It depends which particular power price you're talking about, but
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  Speaker 3: if you're looking at residential prices, the big thing that's
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  Speaker 3: going to be happening over the next few years is
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  Speaker 3: the lines charges again and to continue to increase and
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  Speaker 3: that we'll probably offset some small declines we're going to
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  Speaker 3: see on the energy side of the equation.
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  Speaker 2: All Right, I thank you Andrew as always Andrew Harvey Green,
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  Speaker 2: who's a full Sight Bar senior equity analyst.
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