Contact Energy Posts $423M Profit on Manawa Deal

Contact Energy reported a net profit of $423 million for the year ended June 30, according to financial results released on Monday. Operating earnings (EBITDAF) topped $1 billion for the first time, reaching $1.011 billion, as the company absorbed rival Manawa Energy and benefited from higher renewable generation output, lower fuel costs, and improved hydro inflows running at 118 percent of the average, according to company reports and RNZ coverage.

Contact Energy Profit Climbs 62 Percent Following Manawa Acquisition

Contact Energy posted a 62 percent jump in underlying profit from the previous year’s $261 million, while RNZ reported a rise to $423 million from a reported $331 million a year earlier, factoring in a one-off gain related to Ahuroa Gas Storage in the 2025 financial year. Operating earnings climbed 31 percent from $774m, driven by the July 2025 acquisition of Manawa Energy, which added 2.4 terawatt hours of renewable generation. Total output for the year was 98 percent renewable, according to company disclosures.

Operating free cash flow climbed 49 percent to $648 million, supported by the Manawa integration, improved operational performance, and positive movements in working capital. In February, the company raised $575m in new equity to pay down debt and fund upcoming renewable projects. Average wholesale electricity prices fell 11 percent to $140 per megawatt hour as hydro conditions improved significantly compared with tighter conditions the prior year.

Data Centre Exploration Planned in Stratford with CDC

Contact announced a partnership with CDC data centres to explore building a 250-megawatt data centre in Stratford, Taranaki, near the company’s recently retired Taranaki combined cycle gas power plant. The proposed facility would carry an IT load of 250MW, with total electricity demand reaching roughly 350MW once ancillary systems are included, according to RNZ reporting. Chief executive Mike Fuge stated that power for the digital hub would be supplied under long-term contracts supported by Contact’s development pipeline.

The Stratford site currently holds consents for up to 500 megawatts of grid-scale batteries alongside an existing grid connection. Contact’s joint venture with Lightsource bp is also examining a 150-megawatt solar farm with integrated battery storage nearby. Company disclosures emphasize that the data centre proposal remains in early stages, requiring resource consents, customer agreements, and financing before any final investment decision.

Renewable Generation and Energy Security Investments

Contact advanced several generation and security projects over the year, bringing its first 100-megawatt grid-scale battery online at Glenbrook in March and starting construction on a second 200-megawatt unit scheduled for completion by early 2028. In August 2025, the company signed a 10-year agreement with Genesis Energy for 50 megawatts of firming capacity at Huntly to keep Rankine coal-and-gas units available during dry years. Additionally, Contact secured a seven-year gas supply deal with the Ministry of Business, Innovation and Employment, backed by Greymouth Gas, to supply about 100 schools, hospitals, and public entities.

On the generation front, consent was granted in April for a Southland Wind Farm projected to produce over 1.2 terawatt hours annually. Construction advanced on the Te Mihi Stage 2 geothermal plant ahead of a scheduled 2027 third-quarter launch, while commissioning began at the Kōwhai Park solar farm and a second solar project at Glorit reached financial close in June. Chief executive Mike Fuge described the 2026 financial year as transformational, noting that the combined entity positions the firm well to execute its Contact31+ strategy.

Frequently Asked Questions

What was Contact Energy’s net profit for the year?

Contact Energy reported a net profit of $423 million for the year ended June 30, up 62 percent in underlying profit from the previous year (excluding a one-off gain related to Ahuroa Gas Storage in FY25).

How did the Manawa Energy acquisition impact earnings?

The acquisition of Manawa Energy, completed in July 2025, added 2.4 terawatt hours of renewable generation and contributed to operating earnings (EBITDAF) topping $1 billion for the first time.

Where is the proposed data centre located?

Contact is exploring a 250-megawatt data centre in Stratford, Taranaki, in partnership with CDC data centres, utilizing existing grid connections and consented battery storage.