Contact Energy Shares Rise Nearly 5% on ASX as September Report Shows Strong Jump in Retail Sales Volumes

SYDNEY — Shares of Contact Energy rose nearly 5% on the Australian Securities Exchange on Thursday after the New Zealand power company released its monthly operating report showing a sharp increase in retail electricity and gas sales.

Contact's ASX-listed shares were up 32 Australian cents, or 4.78%, at 7.02 Australian dollars in afternoon trading, near the session high of 7.03 dollars. Trading volume on the ASX was light, at about 7,700 shares, as the company's primary listing is on New Zealand's NZX.

The gains came as rate-sensitive sectors such as utilities benefited from a fall in bond yields after weak Australian jobs data reduced expectations of further interest rate increases.

Retail sales jump

In its September operating report, Contact said mass market electricity and gas sales rose to 484 gigawatt-hours, up from 372 gigawatt-hours a year earlier.

The company also reported growth in customer numbers and a decline in the greenhouse gas emissions intensity of its operations.

However, its wholesale business saw total net revenue per megawatt-hour decline compared with a year earlier.

New Zealand's national electricity demand fell 0.5% in September from a year earlier, despite warmer-than-average temperatures.

Strong full-year results

The report follows a strong fiscal 2026 for Contact, which reported earnings before interest, tax, depreciation, amortization and fair value changes of 1.011 billion New Zealand dollars, up 31% from the previous year. Net profit rose 62% to 423 million New Zealand dollars.

The growth was driven largely by the acquisition of Manawa Energy, which added 2.4 terawatt-hours of annual renewable output and 26 hydroelectric schemes. Contact said it achieved 28 million dollars in annual cost savings from the integration.

Renewable sources accounted for 98% of the company's generation in fiscal 2026. Contact raised its annual dividend 3% to 40 New Zealand cents per share.

Growth projects

Contact is New Zealand's second-largest electricity generator and operates geothermal, hydroelectric and gas-fired power stations. It is led by CEO Mike Fuge.

The company is pursuing a range of renewable projects, including geothermal, battery and solar developments, funded in part by a 525 million New Zealand dollar equity raise earlier this year. It has also partnered with data center operator CDC to develop a large data center in Taranaki, a move analysts have said could steady cash flow but would require significant funding.

Share performance

Despite Thursday's gain, Contact shares have fallen about 16% over the past 12 months. On the NZX, the stock has traded between 8.38 and 9.99 New Zealand dollars over the past year.

Analysts covering the company have an average price target of about 10.39 New Zealand dollars, above recent trading levels.

Investors will watch upcoming monthly operating reports for trends in retail sales, wholesale prices and hydro storage levels, along with progress on the company's renewable development pipeline. Contact is scheduled to report its first-half fiscal 2027 results in February.