Contact Energy said its first quarter performance had been hit by dry conditions in its South Island hydro catchment and by reduced natural gas availability.

The decline was unlikely to affect Contact's dividend as its policy "looks through" variations in mean hydrology.

"Earnings are currently tracking below the level expected for a mean hydrology year," Contact said in its monthly update.

All Contact's hydro assets are in the South Island.

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The company's giant Clyde dam generates 432 megawatts and the nearby Roxburgh dam 320MW.

As at October 10, total Clutha scheme storage was 24 per cent of mean.

Inflows into Contact's Clutha catchment for September 2019 were 52 per cent of mean, it said.

The company has extensive thermal and geothermal assets in the North Island and gas powered units in Taranaki.

As at October 10, total Clutha scheme storage was 24 per cent of mean.

Contact's net profit came to $345 million in the year to June 30, up 161 per cent on the previous year's.

The company's shares last traded at $8.72, down 13c.