Contact Energy Ltd

CEN: XNZE (NZL)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	NZD 5.30	Ykgkht	Yjvwhwdc

Contact Energy Earnings: High Electricity Prices Drive Growth in Fiscal 2024

Adrian Atkins

Aug 19, 2024

Narrow-moat Contact Energy reported a solid fiscal 2024 result, with underlying EBITDA increasing by 16% to NZD 663 million and underlying net profit rising by 9% to NZD 230 million. However, the result and fiscal 2025 guidance were slightly softer than expected. We downgrade medium-term EBITDA forecasts by a few percent, but the time value of money largely offsets the impact on our valuation. We maintain our NZD 8.70 per share fair value estimate and consider the stock fairly valued. Dividends totaled NZD 0.37 per share, and fiscal 2025 guidance is NZD 0.39, imputed up to 65% for New Zealand tax residents.

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