Contact Energy shareholders are readying themselves for another stellar result from the energy company, which reports its full-year financial results today.
It has been a relatively quiet year for Contact, since 51 per cent ownership shifted from US energy giant Edison Mission to Australian company Origin Energy, but this is
unlikely to dampen profits.
Analysts polled by Dow Jones Newswires expect Contact to announce that net profit after tax rose 16 per cent to $52 million on a quarterly basis, versus $45 million in the same period a year ago.
Its half-year financial results, announced in April, showed a 61 per cent profit increase, up to $89.2 million for the six months, from $55.3 million previously.
This surge in half-year profit was put down to high wholesale power prices and the increases in gas and electricity prices charged to customers.
Contact's share price has been marching upwards as quickly as its profits, from $6.37 in January to a high of $8 in July. Its share price jumped 14c yesterday, finishing at $7.71.
Contact makes money on both sides of the energy market, earning high prices for the electricity it generates and supplies to the wholesale market, while these same high prices allow it to charge its retail customers more.
Wholesale power prices have stayed high in the months since its last financial results, which should mean continued high profits.
South Island hydro storage lake levels are below average and demand for electricity has been high.
However, the worst of the winter weather is thought to be over now, with state-owned company Meridian saying lake levels are no cause for concern.
Contact is changing its balance date to match that of its new shareholder, Origin.
Today's figures will be for a "nine-month financial year" to June 30.
Steve Barrett is due to retire as chief executive at the end of next month, but an announcement on his replacement is not expected today.
