Contact Energy Ltd. (COENF,CEN.AX) reported Monday higher profit in the first half of fiscal 2026.
Further, the New Zealand-based energy generator announced NZ$525 million equity raise to advance the execution and potential upsizing of renewable energy projects which would accelerate the Contact31+ strategy.
Separately, Contact announced it has made an offer to take full ownership of King Country Energy by purchasing the remaining 25% stake from King Country Trust for around NZ$47 million.
Contact, through its subsidiary, King Country Energy Holdings, currently holds around 75% of the shares in King Country Energy and operates and maintains King Country Energy's five hydropower stations.
In the first half, net profit climbed 44 percent to NZ$205 million from last year's NZ$142 million. Profit per share grew 17 percent to 20.9 cents from 17.9 cents a year ago.
Operating earnings or EBITDAF increased 24 percent to NZ$500 million from NZ$404 million last year.
The latest period included the acquisition of Manawa Energy from July 11, 2025, which contributed to the uplift in earnings. The results also include NZ$22 million of Manawa transaction and integration costs.
Excluding these costs, EBITDAF was NZ$522 million, up 26% year-over-year.
The company said the improved operating result was driven by a significant lift in renewable generation, with output 97% renewable in the first half.
Further, the Board has declared an interim dividend of 16 cents per share, in line with last year. The interim dividend will be paid on March 25 to all shareholders on the register as on February 19.
Looking ahead for fiscal 2026, Contact Chair Rob McDonald said the firm expects to be rapidly demonstrating the execution of key elements of its Contact31+ strategy, launched in November 2025.
The company confirmed investment to build a new 200MW battery, Glenbrook battery 2.0. The total estimated project cost is NZ$235 million.
The Contact board has also confirmed a final investment decision on the Glorit solar farm, subject to funding arrangements. Contact's 50/50 joint venture with Lightsource bp is expected to build, own and operate the Glorit solar farm, at a total estimated construction cost of NZ$305 million.
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