The Contact Energy Ltd (ASX: CEN) share price is in focus following its October 2025 monthly operating update, which saw mass market electricity and gas sales jump to 385GWh, up from 320GWh a year ago. The company also reported a lower unit generation cost of $35.93 per MWh, compared to $52.62 per MWh in October 2024.
What did Contact Energy report?
- Mass market electricity and gas sales: 385GWh (up from 320GWh in October 2024)
- Average customer netback: $146.09 per MWh (vs $133.29/MWh last year)
- Contracted wholesale electricity sales: 997GWh (previously 699GWh)
- Unit generation cost: $35.93 per MWh (improved from $52.62/MWh in 2024)
- Total electricity and steam net revenue: $116.76 per MWh (down from $136.30/MWh)
- Electricity generated or acquired: 1,018GWh (was 717GWh)
What else do investors need to know?
Contact Energy's combined reporting now includes the recent acquisition of Manawa Energy, effective from July 2025, resulting in higher volumes across several categories. The report confirmed robust hydro storage levels as at mid-November, with South Island at 151% and North Island at 120% of the mean—supporting the company's resilience for the summer period.
October also saw New Zealand's electricity demand rise by 5.2% year-on-year, spurred by slightly warmer weather and ongoing economic activity. Contact's customer base reached 665,000 total connections, up from 637,000 in October 2024.
What's next for Contact Energy?
Contact Energy is progressing well with its renewable development pipeline. Three major projects are underway: the Glenbrook-Ohurua battery storage (expected online Q1 2026), Kowhai Park Solar (Q2 2026), and the Te Mihi Stage 2 geothermal project (Q3 2027). Together, these aim to support a cleaner supply mix, reflecting Contact's strategy to lead in low-carbon energy.
With contracted gas volumes of 9.5PJ for the next 12 months and strong hydro storage, the company appears well-placed to meet future demand while managing costs. Investors can expect continued updates as these projects near completion.
Contact Energy share price snapshot
Over the past 12 months, Contact Energy shares have risen 7%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.
