Interesting results call. Higher dividends on the cards.
Free cashflow for the year to June was 41.8c a share but could rise to 58-60c a share.
Would have thought it was pretty obvious FCF was going to increase given they did a capital raise not too long ago to build another geothermal plant. What in that result was unexpected to the upside? We all knew Rio was keen for a new deal, that CEN is way below their target debt band (hence building more capacity) and that new generation is coming online in next few years. Did I miss something or was the market expecting a poor result? Surprised at the price strength here... 8 bucks tomorrow?
https://www.nzherald.co.nz/nz/free-power-offer-will-help-new-families/ZC464WB6X5CVXJS6LZZ63QBGE4/
Savvy piece of feel good marketing from Contact- three months of free power to Kiwi families expecting a baby from 01 February this year.
Bit of a surprise here.... net loss n all!
https://www.nzx.com/announcements/406544
Net loss of $7m reported after recognising an onerous contract provision of $120m ($86m after tax) following a review of the estimated available capacity of the Ahuroa Gas Storage Facility (AGS). Excluding AGS, underlying net profit was $79m.
- Underling EBITDAF (pre-AGS provision) decreased by $76m to $246m as a result of lower wholesale prices, lower renewable and thermal generation, increased operating costs to deliver on strategic growth priorities and inflationary conditions.
Quote from: Left Field on Feb 13, 2023, 08:36 AMBit of a surprise here.... net loss n all!
https://www.nzx.com/announcements/406544
Net loss of $7m reported after recognising an onerous contract provision of $120m ($86m after tax) following a review of the estimated available capacity of the Ahuroa Gas Storage Facility (AGS). Excluding AGS, underlying net profit was $79m.
- Underling EBITDAF (pre-AGS provision) decreased by $76m to $246m as a result of lower wholesale prices, lower renewable and thermal generation, increased operating costs to deliver on strategic growth priorities and inflationary conditions.
Net profit is not as important for Contact as Free Cash Flow. They've had losses and profit swings before. The FCF determines their ability to keep pumping out big dividends. SP might dip on some retail alarm but it should recover quickly. That all said, I'm still of the opinion that Genesis and several others are better bets in this space.
No pay rise this time for those who rely on their dividend income
Down 1.5% (12cps) on the morning trades. CEN conference call was effective in spinning the positives.
The energy stocks have had a bit of love recently.
CEN reached a 52 week high Friday and matched it midday today. Slowly edging towards that 2 year high.
Will be interesting to see if the earnings report around 2 weeks from now will provide further support of the share price.
Is there a big pipe line of income in the future?
P/E is a bit high... havnt been following the energy sector in NZ for a while. Never know what the next GOVT will do... Nationalise the grid? (just joking)..
RMA - the complete stalling of development unless Local IWI allow it.. Contact energy say they will make it much harder to develop renewables.
https://www.buzzsprout.com/944017/13289771-national-mp-chris-bishop-on-the-rma-replacement-and-national-s-alternative
Contact Energy's Tauhara geothermal power station strikes problems
https://www.rnz.co.nz/news/business/502093/contact-energy-s-tauhara-geothermal-power-station-strikes-problems
Forbar downgraded CEN. Share price down over 5% the past 5 days.
https://www.nbr.co.nz/investment/forbar-downgrades-contact-on-geothermal-delay/?utm_source=ActiveCampaign&utm_medium=email&utm_content=NBR+HEADS+UP%3A+Jeremy+Moon+s+2nd+startup+about+to+hit+US+premium+petfood+market&utm_campaign=NBR+Newsletter%3A+2023-11-14+09%3A14%3A32
This should boost shareprice
Things going well and increased divies
http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/CEN/434092/422252.pdf
Great they're doing so well but on the other side of the coin...oh dear...it's really tough for some people.
https://www.nzherald.co.nz/nz/four-months-with-no-electricity-new-zealand-families-rationing-and-living-without-power-to-eat/JDNUEU3FCBFALNVSAJ47VOVEYY/
Quote from: Basil on Jul 08, 2024, 09:26 AMGreat they're doing so well but on the other side of the coin...oh dear...it's really tough for some people.
https://www.nzherald.co.nz/nz/four-months-with-no-electricity-new-zealand-families-rationing-and-living-without-power-to-eat/JDNUEU3FCBFALNVSAJ47VOVEYY/
Oh dear, what happened?
No matter how good the news, you spread misery all over the place ...
Do we need a thread "the beagles misery"?
Seriously - I hope you are ok?
Just providing a link to another perspective on life for many families. Nothing more to it than that.
The economy is a bit of a long hard grind, but it is what it is. I take vitamin D tablets for SAD, (seasonal affective disorder) and walk the dog most days, highly recommend both those things. Taking the boat out for a spin tomorrow. I'm fine, thanks for asking.
P.S. For what it's worth, (I don't hold), I thought the announcement by CEN was a good one with rising sustainable dividends in the years ahead. After Adiran Orr's more dovish tone today its clear interest rates are headed down in the not too distant future so the extent of the share price drop in CEN, with a further meaningful drop today is quite surprising. I suppose it's a buy the rumour sell the fact type situation ?
AFR tonight reporting $500 mill cap raise incoming.
How come NZ outlets don't get Sunday night scoops eh
Quote from: Crackity on Feb 15, 2026, 08:56 PMAFR tonight reporting $500 mill cap raise incoming.
How come NZ outlets don't get Sunday night scoops eh
Yeah, take your point regards announcements seem to delay sometimes via NZ.
Thought does this mean CEN is the Power Company behind the GAS generation option Govt are driving at, or purely a restructure choice at this time.
Other news I had noticing a recent uptick in SP by Mr Market contemplated last Thursday a partial SELL on my CEN holding to drop the weighted average holding cost, did a google AI on the TA elements for CEN and it suggested a high probability of a continuing SP uplift so I didn't settle on a price to offer to the market and follow through at the time.
Interesting CEN is not spoken of much here I see.
Took part in the offer yesterday but received only 20 percent of my order, so massive scaling.
Good to be back in to this quality company.
This must be a record from announcing a dividend and two days later it is ex div
Quote from: 777 on Feb 18, 2026, 11:31 AMThis must be a record from announcing a dividend and two days later it is ex div
NZX granted special allowance for this, per CEN request on the basis of - the timing of the capital raise and allocation of the new shares, it would not be fair on existing shareholders that these new shareholders got the benefit of a dividend
There is a notice on NZX about it, and is part of the "discounted SP" calculation - offered on ex-dividend basis. Sounds entirely reasonable to me
The DRP election date is this Friday 20 February.
The pricing of the DRP shares issued for the March 2026 dividend is the lower of the SPP issue price (looking like $8.75 but still some water to go under the bridge) and the standard DRP scheme 2% discount based on ex dividend VWAP over the fist five trading days after going ex entitlement. If you are chasing maximum SPP participation, makes sense to also elect into the DRP if haven't already.
Quote from: Shareguy on Feb 17, 2026, 11:30 AMTook part in the offer yesterday but received only 20 percent of my order, so massive scaling.
Good to be back in to this quality company.
Hi Shareguy
the CEN offer and all is very much on the fast track, but it seems from your post that once a retail investor submits they have a formulaic predetermination on the allowance. Perhaps it's a straight 20% being applied, but are you possibly able to please indicate how close the allotment you received is to being 60 shares for each existing 1000 holding, my speculation as they have talked of dilution levels around that number and an intent to not have any participating shareholder in a forced dilution position.
Assume Shareguy took part in the placement via broker rather than the SPP.
Allocations of SPP will depend on level of applications received and con only be determined after the closing date.
Quote from: Otago K on Feb 22, 2026, 12:20 PMHi Shareguy
the CEN offer and all is very much on the fast track, but it seems from your post that once a retail investor submits they have a formulaic predetermination on the allowance. Perhaps it's a straight 20% being applied, but are you possibly able to please indicate how close the allotment you received is to being 60 shares for each existing 1000 holding, my speculation as they have talked of dilution levels around that number and an intent to not have any participating shareholder in a forced dilution position.
Hi Otago K , I took part in the original institutional placement through my broker and only got 24 percent (exactly) of what I applied for. I expect that the retail offer will also be heavily scaled due to the current SP and the dilution effect of the cap raise from memory was only about 6 percent.
I see this as a quality share great for long term holders.
Quote from: Southern Lad on Feb 22, 2026, 12:27 PMAssume Shareguy took part in the placement via broker rather than the SPP.
Allocations of SPP will depend on level of applications received and con only be determined after the closing date.
Yes your correct Southern Lad
Quote from: Southern Lad on Feb 22, 2026, 12:27 PMAssume Shareguy took part in the placement via broker rather than the SPP.
Allocations of SPP will depend on level of applications received and con only be determined after the closing date.
SPP Closed oversubscribed and subject to some adjustment. circa NZ$ 75M initial offering, Application totals NZ$ 251M, Total ultimately accepted by CEN of NZ$ 125M.
The allocations to holders under the SPP have been announced yesterday the 13th.
My summation if accurate might be that any existing holder who applied for up to 13.658% additional shares to their holding levels will have received that allocation and perhaps there was nothing allocated above that level.
Money refunded today.
Sharesies is giving eligible investors the opportunity to apply for CEN shares through this offer.
Applications through Sharesies need to be submitted by 3:00 PM (NZST) Wednesday 20 May 2026.
About this offer
Infratil Limited is selling down approximately 54 million CEN shares, representing 5.0% of CEN shares on issue. Following the sale, Infratil will retain a ~9.1% stake in Contact Energy and has committed not to sell its remaining CEN shares until Contact Energy's FY26 results (expected on or around 18 August 2026).
Issue price
The offer price is NZ$9.25 per share — a 7.3% discount to Contact Energy's last close price of NZ$9.98 on Tuesday 19 May 2026.
Decided to participate in the offer. Scaled but now one of my largest NZX holding. A great share for long term holders is how I see it.
Quote from: Shareguy on May 21, 2026, 09:58 AMDecided to participate in the offer. Scaled but now one of my largest NZX holding. A great share for long term holders is how I see it.
Looks like scaled to around 62% of amount applied for.
Quote from: Sideshow Bob on May 21, 2026, 03:24 PMLooks like scaled to around 62% of amount applied for.
These sell downs are generally always scaled down as it's just a change in ownership nothing material or new issue shares (no dilution). I'm expecting it to slowly track back up.