Shareholders of Contact Energy Ltd (NZX & ASX: CEN) were told the New Zealand energy market remains highly competitive and was currently delivering good outcomes for customers, who now have a choice of providers offering competitive pricing and new and innovative products.
The chief executive Dennis Barnes said in a letter to shareholders that Contact was competing well in this environment by providing customers with choice, certainty and control while systems-enabled operational improvements continued to improve.
He said Contact again recorded a level of switching below that of the overall market, with customer churn reducing to 19.1% over the last 12 months, 1.8 percentage points below the market average.
He said despite a strong operational performance, the customer business EBITDAF fell by $3 million to $63 M in the half year to December compared to the same period a year ago.
“This was mainly due to rising LPG product costs, which are linked to international oil prices and foreign exchange
Barnes said Contact’s focus for the next six months remains on delivering operating free cash flow growth by focusing on aspects the company can control. It will also maintain a disciplined and transparent approach to operating and capital expenditure.
“Our generation assets, deep relationship with customers, ongoing cost efficiency programme, and lean operations gives us confidence in our ability to execute on our strategy, manage the challenges, and develop the opportunities ahead,” he added.
Companies mentioned in article