These factors resulted in a number of challenging years for Contact, particularly in terms of its financial performance.
But he said Contact's strategy for increased flexibility in its generation and fuel portfolio was contributing to improved financial performance.
Contact's underlying earnings after tax for the year were $176 million, up 17 per cent from the year before.
Capital expenditure in the current year would remain relatively high, although lower than the prior year, but in future years Contact's capital expenditure would fall substantially, he said.
"Looking to the future, we expect little growth in demand for electricity and the retail market to remain highly competitive," he said.
"When New Zealand does experience increased demand for electricity or older, less efficient plant is retired, Contact is well positioned with some of the most competitive development opportunities, particularly in geothermal power generation," he said.
With the current capital investment programme coming to end, the Contact board would consider how best to utilise the significant cash-flow of the business and how this could best be applied to the benefit of shareholders, he said.
Contact provides electricity, natural gas and LPG to about 567,000 customers nationally.
The company, which is one of New Zealand's most widely owned stocks with around 75,000 shareholders, listed on the NZX in 1999.
In 2004, Australia 's Origin Energy became Contact's majority shareholder.
Contact shares last traded at $5.37, up 2c, and have traded in a $4.60 to $5.74 range over the last 52 weeks.
