The Contact Energy Ltd (ASX: CEN) share price is in focus after the company's May 2026 operating report revealed higher mass market electricity and gas sales volumes, alongside lower generation costs compared to the same time last year.
What did Contact Energy report?
- Mass market electricity and gas sales rose to 461GWh (up from 365GWh in May 2025)
- Customer netback increased to $148.13/MWh (May 2025: $145.13/MWh)
- Contracted wholesale electricity sales reached 1,027GWh (May 2025: 768GWh)
- Electricity generated or acquired for the month totalled 1,034GWh (May 2025: 842GWh)
- Unit generation cost dropped to $37.11/MWh (May 2025: $49.26/MWh)
- Otahuhu ASX futures settlement price as of 11 June 2026 was $111.85/MWh (down from $144/MWh at 30 April 2026)
What else do investors need to know?
Contact Energy highlighted favourable storage conditions, with South Island controlled hydro storage at 120% of mean and North Island at 149% of mean as of 11 June 2026. Clutha scheme storage was also above average, aiding operational flexibility.
The company's renewable development pipeline continues to progress, with major projects such as the Kōwhai Park Solar and Te Mihi Stage 2 geothermal under construction with expected online dates between late 2026 and 2028. Contracted gas volume for the next 12 months stands at 8.2PJ.
New Zealand electricity demand in May 2026 was 1.5% higher than in May 2025, indicating steady market conditions despite a warmer average temperature for the month.
What's next for Contact Energy?
Contact Energy will focus on advancing its renewable projects to support future growth and align with decarbonisation goals. The Kōwhai Park Solar remains on track for completion by Q3 2026, followed by further expansion in geothermal, battery, and solar assets through 2028.
With controlled hydro storage levels remaining strong and wholesale electricity prices easing off recent highs, Contact Energy appears well-positioned to manage both rising demand and cost pressures in the near term.
Contact Energy share price snapshot
Over the past 12 months, Contact Energy shares have declined 8%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.
