MENU

Why Contact Energy Limited (ASX:CEN) shares fell on its FY18 results

New Zealand-based Contact Energy Limited (ASX: CEN) shares are down 1.5% to $5.17 at the time of writing after the release of its FY18 results.

The diversified integrated energy company announced an EBITDAF drop of 4%, underlying profit down 9%, but its declared dividend of 32c per share is up 23%.

Contact’s results demonstrated a second successive year of below-average hydro inflows and a continuation of intense retail competition.

But the company has $301 million in free cash flow with operating costs reducing by $20 million, with its sale of the AGS facility and Rockgas LPG business two significant transactions over the year.

Going forward Contact will focus on accelerated digital transformation in its customer business with clear efforts made to decarbonise New Zealand’s energy sector.

The energy sector is one to watch on the ASX in the next week as reporting season notches up a gear, with Woodside Petroleum Limited (ASX: WPL) reporting on August 15 and Origin Energy Ltd (ASX: ORG) on August 16.

7 of 8 People Are Clueless About This Trillion-Dollar Market

One of our investors has recently returned from a research trip to Silicon Valley... and has a warning for fellow investors:

Because he works for an organization dedicated to spreading great investing ideas, his video report is free today... so you can see it and decide for yourself.

Don't miss your chance click here to learn about this warning and how you might be able to profit!

Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…

Including:

The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!