The Contact Energy Ltd (ASX: CEN) share price is in focus after the company's March 2026 operating report revealed higher electricity and gas sales volumes but slightly lower customer margins compared to last year. Wholesale volumes and generation capacity also increased, with lower unit generation costs providing a boost.
Image source: Getty Images
What did Contact Energy report?
- Mass market electricity and gas sales rose to 359 GWh (March 2025: 282 GWh).
- Mass market netback was $172.45/MWh, down from $182.13/MWh a year ago.
- Contracted wholesale electricity sales climbed to 903 GWh (March 2025: 701 GWh).
- Total electricity and steam net revenue was $130.99/MWh (March 2025: $135.72/MWh).
- Unit generation cost decreased to $56.24/MWh (March 2025: $70.12/MWh).
- Electricity generated or acquired grew to 925 GWh (March 2025: 767 GWh).
What else do investors need to know?
Contact Energy has seen healthy growth in total customer connections, reaching 684,000 in March 2026. Gas sales volumes and telco connections also increased compared to the same time last year.
Controlled hydro storage remains strong, especially in the North Island (182% of mean), helping to support elevated electricity generation. Contracted gas volumes for the next 12 months now total 8.5 PJ, including contracted swaps.
The Glenbrook-Ohurua Battery 1 came online in March, marking progress in Contact's renewable development. Other major projects, such as Kōwhai Park Solar and Te Mihi Stage 2 geothermal, remain under construction, aiming for completion from late 2026 to 2028.
What's next for Contact Energy?
Contact Energy continues to advance its renewables strategy, with several large-scale solar, geothermal, and battery projects underway. The successful commissioning of Battery 1 demonstrates ongoing delivery on these plans.
Looking ahead, the company will focus on maximising benefits from increased generation capacity and storage, as well as navigating wholesale price fluctuations. Investors can expect updates as the major renewable projects near completion.
Contact Energy share price snapshot
Over the past 12 months, Contact Energy shares have declined 7%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 16% over the same period.
