Contact Energy profit close to budget, AGM told

Contact Energy expects to meet the forecast net surplus in the Grant Samuels report, chief executive Steve Barrett told the AGM in Auckland today.

Contact's overall net surplus was close to budgeted levels, and above those for the same time last year, Mr Barrett said.

"The strong retail performance has offset weak electricity spot prices in the year to date. Gas volumes and revenue are broadly in line with budget," he said.

"At this stage, we expect to meet the forecast net surplus reflected in the Grant Samuel report, assuming wholesale prices move back on to average year supply-demand conditions.

"However, Contact's earnings are significantly weighted towards winter months, and financial performance can therefore still move dramatically above or below budget for those months."

The Grant Samuels report forecast a 22 per cent fall in Contact's net profit after tax of $102 million for the year to September 30, due to lower electricity prices than last year when there was an unusually dry winter.

Contact's total customer numbers had grown to 515,000 by the end of February 2002, with 409,000 of those being electricity customers, Mr Barrett said.

Contact Energy is to introduce quarterly reporting, from the June quarter of the current financial year.

The company would not send quarterly reports to each shareholder, because of the large number of shareholders, but would release the information to the New Zealand Stock Exchange.

By mid-morning Contact shares traded down 3c at $3.90, compared with a year high of $4.20 and a low of $2.62.

- NZPA