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Contact Energy share price lifts as it doubles profits to $99 million

This morning New Zealand-based Contact Energy Limited  (ASX: CEN) reported its half-year results for the period ending December 31 2018. Below is a summary of the results with comparisons to the prior corresponding half (all figures in NZ$).

  • Statutory profit of $276m
  • Profit from continuing operations of $99m, up 111%
  • Underlying profit per share $97m
  • Operating free cash flow of $203m
  • Adjusted profit per share from continuing operations of 13.8 cents
  • Interim dividend of 16 cents per share, up 23%
  • Target for full year dividends to total 39 cents per share

Contact Energy is the second-largest electricity and gas supplier in New Zealand with a market value close to $4.5 billion. Its shares are up around 20% over the past 5 years excluding the beneficial effects of dividends.

In total it’s aiming to lift dividends 22% over FY 2019, which would be the strongest result since FY 2016 when it also paid a special dividend.

The group reported electricity demand in New Zealand was flat over the period and carries net debt of $931 million on a net debt to EBITDAF ratio of 2.8x.

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Motley Fool contributor Tom Richardson 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.

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