ASX 200 energy stock shows continued progress on renewables

Contact Energy reported stable August 2025 sales, higher netback, and continuing renewables investment.

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The Contact Energy Ltd (ASX: CEN) share price is in focus after the company reported steady mass market electricity and gas sales of 454GWh in August 2025, alongside a marked increase in mass market netback to $148.36/MWh compared to $131.36/MWh a year ago.

What did Contact Energy report?

  • Mass market electricity and gas sales were 454GWh, broadly flat versus 456GWh in August 2024.
  • Mass market netback rose to $148.36/MWh (August 2024: $131.36/MWh).
  • Contracted wholesale electricity sales reached 830GWh, just below 840GWh last year.
  • Total electricity and steam net revenue was $172.23/MWh, down from $204.53/MWh in August 2024.
  • Unit generation cost, reflecting acquired generation, fell to $52.89/MWh from $80.39/MWh in the prior year.
  • Contact's customer connections climbed to 655,000 from 632,000 a year ago.

What else do investors need to know?

Contact Energy generated or acquired 918GWh of electricity in August, up from 875GWh in the same month last year. The proportion of hydro and geothermal generation increased, helping support a lower average generation cost.

The company is progressing with major renewable energy projects, including the Glenbrook-Ohurua BESS and the Kowhai Park Solar developments, due online by Q2 2026, and the Te Mihi Stage 2 geothermal project expected in Q3 2027.

South Island controlled storage was at 71% of the mean, while North Island storage was near average at 97% as of mid-September 2025. Inflows into the Clutha catchment were below average for August, at 72% of the historical mean.

What's next for Contact Energy?

Contact Energy remains focused on advancing its renewable projects to support New Zealand's energy transition. With growing demand for electricity, these projects are expected to lift capacity and improve the company's environmental footprint.

The company will also be integrating recent acquisitions, with Manawa's EBITDAF contribution highlighted at $15.4 million for August. Management continues to review its reporting approach as the integration progresses.

Contact Energy share price snapshot

Contact Energy shares have beaten the market over the past 12 months, rising 16% compared to a 9% increase for the S&P/ASX 200 Index (ASX: XJO).

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

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