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Although somewhat overshadowed by news of plans for a $2 billion investment in renewable energy projects, Contact Energy's half year result came in at the upper end of expectations, boosted by cheaper gas supplies.
However, it has restated guidance that its full-year net profit is likely to be "materially lower" than a year ago.
The generator and retailer reported a December-half bottom line of $122.9 million, down from $146.6 million a year ago.
Last year's first half was boosted by a $33.4 million gain on the sale of its stake in an Australian power station. Excluding that, the company's profit was up by $7.2 million or 7.2 per cent.
Operating earnings of $275.4 million were down slightly.
Chief executive David Baldwin said the result was pleasing for having been achieved "despite some challenging trading conditions".
Due to a delay in full production from the Pohokura gas field, the company had been able to use lower cost sourced gas, which had helped the result but was unlikely to be repeated over the current half.
Net profit in 2007 was likely to be lower than for the previous year.
With its strong balance sheet, Contact - 51 per cent by Australia's Origin Energy - had been tipped to make a capital return to shareholders, until the company revealed plans to invest $2 billion in two new geothermal plants and two wind farms over the next five years.
That didn't appear to bother the market which sent its shares 37c higher to a fresh closing high of $8.95.
The company announced a 10c fully imputed dividend unchanged from a year ago.
