By Phil Boeyen, ShareChat Business News Editor
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Monday 11th March 2002 |
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Speaking to shareholders at the company's annual meeting CEO Stephen Barrett said a strong retail performance for the year to date has offset weak electricity spot prices.
"At this stage, we expect to meet the forecast net surplus reflected in the Grant Samuel report, assuming wholesale prices move back onto average year supply/demand conditions.
"However, Contact's earnings are significantly weighted towards winter months, and financial performance can therefore still move dramatically above or below budget for those months."
Contact benefited from New Zealand's cold, dry winter in 2001 because, as a net generator of power, it was able to profit when spot prices soared.
The company made a profit of $130.7 million for the year ended September 2001 and according to its draft plan is heading for a profit of $102 million in the current year on total revenue of $1.013 billion. Wholesale electricity revenue is forecast to be $416 million, down from $716 million last year.
Chairman Phil Pryke told shareholders that they will be able to learn how the company is doing on a quarterly basis from the middle of the year when the company introduces quarterly reporting.
"The board has examined the issue closely, after shareholders at last year's annual meeting suggested moving from twice-yearly to quarterly reporting.
"Most New Zealand companies have not adopted the practice. We have concluded, however, that there will be advantages to the company and shareholders in gathering and publishing this additional level of information about Contact's financial performance."
Due to costs Mr Pryke says the quarterly reports will not be sent out to each shareholder but will be released to the stock exchange and financial media and will also be placed on the company's website.
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