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.

View Original Announcement

The post Contact Energy lifts sales and generation in March 2026 monthly update appeared first on The Motley Fool Australia.

What did Contact Energy report?

• Mass market electricity and gas sales rose to 295GWh (Feb 2025: 237GWh)
• Average customer netback held steady at $160.23/MWh (Feb 2025: $159.57/MWh)
• Contracted wholesale electricity sales reached 816GWh (Feb 2025: 632GWh)
• Unit generation cost dropped to $41.70/MWh (Feb 2025: $70.95/MWh)
• Electricity generated (or acquired) totalled 809GWh (Feb 2025: 675GWh)
• Average electricity sales price rose to $380.72/MWh (Feb 2025: $341.24/MWh)

What else do investors need to know?

Contact Energy's wholesale business saw a notable fall in unit generation costs and higher electricity sales, which points to improving operational efficiency. However, electricity and steam net revenue per megawatt hour declined to $122.35 from $133.15 a year ago, reflecting some pricing or mix changes.

Hydro storage on 16 March 2026 was healthy, with South Island at 98% and North Island at 164% of mean levels. February 2026 inflows into the Clutha catchment, though, were 73% of the mean, following strong inflows in previous months.

Contact is progressing with three major renewable projects, including Glenbrook-Ohurua Battery (Q1 CY26), Kōwhai Park Solar (Q2 CY26), and Te Mihi Stage 2 geothermal (Q3 CY27).

What's next for Contact Energy?

Contact Energy is firmly focused on expansion and transition to renewables, with several large projects under construction and over $1 billion invested in new solar, battery, and geothermal facilities through 2027.

Equity analysts' FY26 EBITDAF forecasts have been summarised, with consensus in the $965 million to $995 million range, depending on Manawa integration costs. The company is not endorsing individual forecasts.

Contact Energy share price snapshot

Over the past 12 months, Contact Energy shares have declined 4%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 10% over the same period.

View Original Announcement

The post Contact Energy posts higher sales and lower costs in February 2026 report appeared first on The Motley Fool Australia.

What did Contact Energy report?

• Retail share offer oversubscribed, receiving approximately NZ$251 million in valid applications
• 29,727 eligible shareholders participated, up from 18,667 in the 2021 offer
• Total NZ$125 million raised under the retail offer after accepting an additional NZ$50 million in oversubscriptions
• Retail offer shares issued at NZ$8.75 per share (A$7.36 for Australian investors)
• Settlement and trading to commence on NZX from 13 March 2026, and on ASX from 16 March 2026
• Dividend Reinvestment Plan (DRP) strike price set at NZ$8.75, with shares issued 25 March 2026

What else do investors need to know?

The retail offer is part of Contact's broader capital raising effort, following a fully underwritten NZ$450 million institutional placement. The total equity raise aims to support the acceleration and potential expansion of Contact's renewable energy projects, in line with its Contact31+ strategy.

Participation in the retail offer was notably strong, with more shareholders taking part than in previous rounds. All new shares will rank equally with existing ordinary shares, and confirmations on allocations and any surplus refunds will be sent out from 19 March 2026.

The Dividend Reinvestment Plan's strike price has also been set to benefit investors, using the lower of the five-day volume weighted average price (less a 2% discount) or NZ$8.75, which aligns with the retail offer price.

What's next for Contact Energy?

Proceeds from the capital raising will be directed towards advancing and potentially upsizing renewable energy developments. These projects are designed to boost Contact's environmental credentials and future growth as part of its Contact31+ strategic goals.

Investors should watch for further announcements as new projects take shape and the company provides updates on deployment and impacts on future earnings.

Contact Energy share price snapshot

Over the past 12 moths, Contact energy shares have declined 4%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 12% over the same period.

View Original Announcement

The post Contact Energy reports strong support for 2026 retail share offer appeared first on The Motley Fool Australia.

What did Contact Energy report?

• Successfully completed a fully underwritten NZ$450 million institutional placement
• Equity raise totals up to NZ$525 million, including a proposed NZ$75 million non-underwritten retail offer
• Strong support from existing shareholders and demand from new international institutional investors
• Settlement for the placement expected on 20 February 2026 (NZX) and 19 February 2026 (ASX)
• All new shares to rank equally with existing ordinary shares

What else do investors need to know?

Contact Energy will open its retail offer to eligible shareholders on 19 February 2026, aiming to raise up to NZ$75 million, with the ability to accept additional subscriptions at its discretion. The retail offer closes on 6 March 2026, giving existing investors a chance to participate on similar terms to the institutional placement.

The company has emphasised fairness by ensuring all eligible institutional shareholders who applied for at least their pro-rata allocation received that amount. New shares issued will begin trading on both the NZX and ASX from 20 February 2026 (placement) and 13 March 2026 (retail offer).

What's next for Contact Energy?

Funds raised through this placement and retail offer will support Contact Energy's growth plans and strengthen its balance sheet as it continues to invest in New Zealand's renewable energy future. The company says it is focused on treating shareholders fairly while providing opportunities for both existing and new investors to participate in its long-term strategy.

Contact aims to deliver value for its shareholders by advancing planned projects and initiatives aligned with its sustainability goals, keeping the energy business competitive in the changing market landscape.

Contact Energy share price snapshot

Over the past 12 months, Contact Energy hare have declined 3%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 5% over the same period.

View Original Announcement

The post Contact Energy completes NZ$450m share placement for growth plans appeared first on The Motley Fool Australia.

What did Contact Energy report?

• Contact has offered to buy the remaining 24.98% of King Country Energy from King Country Trust for around $47 million.
• The purchase, if finalised, would give Contact full ownership of five hydropower stations with 53MW installed capacity.
• The consideration is expected to be paid in scrip (new Contact shares issued to the Trust or its nominee).
• Consultation and review will occur before any deal is finalised, with completion targeted for Q2 CY26.

What else do investors need to know?

Contact already operates and maintains King Country Energy's five hydropower stations, supplying renewable power mainly in the King Country and Horowhenua regions. Full ownership would streamline operations and integrate King Country Energy's assets under the Contact umbrella.

Before the deal can proceed, King Country Trust will run a public consultation and special review, as required by their trust deed. This process is expected to last around a month, and any agreement remains subject to approval from both parties.

What's next for Contact Energy?

The next step is the Trust's public consultation, which will help inform its decision on the offer. If both parties agree, a sale and purchase agreement could be signed and completed in the second quarter of calendar year 2026.

If finalised, Contact Energy will issue new shares as payment, consolidating all King Country Energy operations and assets under its direct control. Investors should watch for further updates as the review and consultation progress.

Contact Energy share price snapshot

Over the past 12 months, Contact Energy shares have risen 1%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

View Original Announcement

The post Contact Energy offers $47m for full King Country Energy ownership appeared first on The Motley Fool Australia.

Meanwhile, the benchmark S&P/ASX 200 Index (ASX: XJO) fell 0.49% to close at 8,860.1 points.

Market spirits were dampened by news of lower unemployment, which raised the prospect of an interest rate hike this year.

Seven of the 11 market sectors finished in the red.

Let's recap.

Utilities shares led the ASX sectors last week

There are only 21 companies in the ASX 200 utilities sector.

Let's review the performance of the seven largest players by market capitalisation last week.

Origin Energy Ltd (ASX: ORG) shares rose 7.22% to finish the week at $11.73.

The APA Group (ASX: APA) share price rose 3.21% to $8.99.

Mercury NZ Ltd (ASX: MCY) shares were steady at $5.50.

The Meridian Energy Ltd (ASX: MEZ) share price rose 2.29% to $4.91.

The AGL Energy Limited (ASX: AGL) share price lifted 1.85% to $8.82.

Contact Energy Ltd (ASX: CEN) shares fell 2.56% to $8 apiece.

Genesis Energy Ltd (ASX: GNE) shares increased 1.94% to $2.10.

Energy sector also rises strongly

The ASX 200 energy sector was the second best performer, rising 3.56%.

US natural gas futures skyrocketed last week, and WTI crude oil futures rose 1% amid a persistently softer US dollar.

On Friday, analysts at Trading Economics said US natural gas futures were on track for a weekly gain of more than 70%.

That would be the largest increase among records dating back to 1990.

The analysts said:

US natural gas futures surged past $5.53 per MMBtu, approaching levels last seen in December 2022, as extreme cold forecasts boosted demand expectations and raised supply risks.

Temperatures are projected to remain mostly below normal through February 5 …

A severe winter storm is expected to affect roughly two-thirds of the country, increasing residential and commercial consumption and raising the risk of inventory drawdowns.

At the same time, output is around a three-month low, with part of this week's production decline linked to freeze-offs, particularly in southern regions.

ASX 200 market sector snapshot

Here's how the 11 market sectors stacked up last week, according to CommSec data.

Over the five trading days:

The post ASX 200 utilities shares led the market last week appeared first on The Motley Fool Australia.

What did Contact Energy report?

• Mass market electricity and gas sales reached 340GWh, up from 274GWh in December 2024.
• Customer netback climbed to $168.91/MWh (December 2024: $156.56/MWh).
• Contracted wholesale electricity sales rose to 950GWh (December 2024: 699GWh).
• Total electricity and steam net revenue grew to $103.94/MWh (December 2024: $98.75/MWh).
• Contact total customer connections rose to 668,000 (December 2024: 635,000).
• Unit generation cost increased to $38.18/MWh (December 2024: $30.68/MWh).

What else do investors need to know?

Contact's mass market electricity and gas sales outperformed last year, with higher netbacks supporting profitability. Wholesale electricity and contracted sales also saw strong gains, while customer numbers continued to grow.

The company's renewable projects are progressing, including the Glenbrook-Ohurua battery expected online in Q1 CY26 and the Kowhai Park Solar project targeted for Q2 CY26. Meanwhile, the TCC plant has moved into decommissioning, reflecting Contact's shift towards renewables. December inflows into the Clutha catchment remained robust, with storage levels well above the long-term mean, supporting reliability.

What's next for Contact Energy?

Contact is ramping up its renewable generation, with several major solar, battery, and geothermal developments underway. Management has also guided for further integration of recent acquisitions and expects continued growth in both retail and wholesale markets.

The company plans to keep building its sustainable energy portfolio, supporting New Zealand's net zero ambitions and providing value to a growing customer base.

Contact Energy share price snapshot

Over the past 12 months, Contact Energy shares have declined 6%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

View Original Announcement

The post Contact Energy posts higher sales and renewables progress in December update appeared first on The Motley Fool Australia.

What did Contact Energy report?

• Mass market electricity and gas sales reached 319 GWh (up from 290 GWh in November 2024)
• Wholesale contracted electricity sales jumped to 845 GWh (733 GWh in November 2024)
• Average electricity sales price was $353.82/MWh (previously $307.43/MWh)
• Unit generation cost rose to $39.62/MWh (from $34.43/MWh a year earlier)
• Customer netback improved to $138.75/MWh (up from $134.39/MWh)
• Total customer connections grew to 667,000 (from 635,000)

What else do investors need to know?

Contact Energy has several renewable energy projects underway, including the Glenbrook-Ohurua battery project (expected online Q1 2026), Kowhai Park Solar (expected Q2 2026), and Te Mihi Stage 2 geothermal project (expected Q3 2027). These investments total over $1 billion and reflect the company's focus on low-carbon energy solutions and future growth.

Hydro storage levels remained strong, with South Island and North Island controlled storage well above long-term averages as of December 2025. Nationwide electricity demand was up 4.1% versus November 2024, signalling a generally positive market environment for the company.

What's next for Contact Energy?

Contact Energy is pressing ahead with its major development projects, which are expected to bolster renewable output and further diversify its generation mix. The company continues to manage gas contracts and energy storage closely, positioning itself to meet rising demand and future-proof its operations.

ESG remains a priority, with ongoing investment in emissions reduction, water management, biodiversity, and community initiatives. Investors should watch for further project updates and operational data in the coming quarters.

Contact Energy share price snapshot

Over the past 12 months, Contact Energy shares have declined 1%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 5% over the same period.

View Original Announcement

The post Contact Energy reports lift in November sales and renewable projects progress appeared first on The Motley Fool Australia.

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.

View Original Announcement

The post Contact Energy lifts sales and cuts costs in October 2025 update appeared first on The Motley Fool Australia.

What did Contact Energy report?

• Mass market electricity and gas sales: 372GWh (September 2024: 389GWh)
• Mass market netback: $150.12/MWh (September 2024: $130.58/MWh)
• Wholesale contracted electricity sales: 736GWh (September 2024: 814GWh)
• Electricity and steam net revenue: $168.78/MWh (September 2024: $174.51/MWh)
• Electricity generated (or acquired): 820GWh (September 2024: 859GWh)
• Unit generation cost (including acquired generation): $35.77/MWh (September 2024: $52.04/MWh)

What else do investors need to know?

Contact's integration of Manawa Energy is progressing, and future reports will reflect combined results. The company's renewable development pipeline remains active, with projects including the Glenbrook-Ohurua BESS, Kowhai Park Solar, and Te Mihi Stage 2 geothermal expected to progressively come online through to 2027.

Hydro storage levels in both the South and North Islands are strong, sitting above 115% of historical averages. Nationwide electricity demand climbed 6.5% year on year in September.

What's next for Contact Energy?

Contact Energy continues to focus on delivering its portfolio of renewable energy projects and integrating the recently acquired Manawa Energy operations. The company aims to provide more combined performance data in future reports, which should add transparency for investors.

Ongoing investment in renewable assets and disciplined cost management remain central to the company's growth plans, positioning Contact to support New Zealand's transition to low-carbon energy.

Contact Energy share price snapshot

Contact Energy shares have risen 2% in the past year, trailing the S&P/ASX 200 Index (ASX: XJO) which has increased 8% over the same period.

View Original Announcement

The post Contact Energy earnings: September 2025 results snapshot appeared first on The Motley Fool Australia.

Utilities are often considered defensive stocks because the services are always in demand, regardless of what point of the economic cycle we're in.

This is particularly attractive for investors looking for dividend-paying stocks because stable earnings means a reliable passive payment for investors.

It's not surprising then that the index has shown consistent growth over the past 12 months. At the time of writing, the index is 11.873% higher for the year. 

Just 21 companies make up the ASX 200 utilities sector, but there's only one stock I have my eye on. And it could be the best stock you've ever considered.

The ASX utility stock to watch

The Contact Energy Ltd (ASX: CEN) share price closed 1.49% higher on Tuesday at $8.18 a piece. 

Over the year the diversified and integrated energy company's share price is 13.61% higher.

Just last week the company announced its August 2025 sales where it revealed a 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.

The company also said it has generated or acquired 918GWh of electricity in August, up from 875GWh in the same month last year, and is progressing with major renewable energy projects.

Clearly there are robust growth prospects ahead.

And the best part? Contact Energy has paid shareholders 33.6 cents a share in unfranked dividends over the past 12 months. At the current price, Contact Energy shares trade on an unfranked trailing dividend yield of 4.1%.

What brokers think of the ASX utility stock

Contact Energy is dual listed on the ASX and the New Zealand stock exchange (NZX). In a note to investors last week, following on the ASX 200 energy stock's August operating update, Macquarie Group Ltd (ASX: MQG) announced it had maintained its outperform rating on the shares.

The broker has a 12-month target price target of NZ$11.35 a share. That's 38.8% above the current share price on the NZX of NZ$8.18.

Aussie investors can expect similar, though not identical, price moves for Contact Energy shares on the ASX.

According to TradingView data, analysts are positive on the stock with 3 out of 6 holding a buy or strong buy rating. The average target price on the ASX is $9.19 and the maximum is $10.09. These represent a potential 12.4% to 23.3% upside for investors over the next 12 months, at the time of writing.

The post Why this ASX utility could be the best stock you ever think about appeared first on The Motley Fool Australia.

Contact Energy shares closed yesterday trading for $8.28. In early afternoon trade on Wednesday, shares are changing hands for $8.24 apiece, down 0.5%. That gives the company a market cap of $7.9 billion.

For some context, the ASX 200 is down 0.7% at this same time.

What's Macqaurie forecasting for Contact Energy shares?

Contact is dual listed on the ASX and the New Zealand stock exchange (NZX). The company, a New Zealand-based electricity energy generator and retailer, is New Zealand's leading generator of renewable geothermal electricity.

Over the past 12 months, shares in the ASX 200 energy stock are up 11.4%. And that doesn't include the 33.6 cents a share in unfranked dividends Contact has paid to eligible shareholders over this time.

At the current price, Contact Energy shares trade on an unfranked trailing dividend yield of 4.1%.

And the year ahead may be even more profitable for stockholders.

That's according to the team at Macquarie Group Ltd (ASX: MQG).

In a report published on Tuesday, following on the ASX 200 energy stock's August operating update on Monday, Macquarie maintained its outperform rating on Contact Energy.

The broker has a 12-month target price target of NZ$11.35 a share. That's 23.2% above the current share price on the NZX of NZ$9.21.

Aussie investors can expect similar, though not identical, price moves for Contact Energy shares on the ASX and the NZX.

What's the latest from the ASX 200 energy stock?

As the Motley Fool reported on Monday, in August, Contact Energy achieved "steady mass market electricity and gas sales of 454GWh … alongside a marked increase in mass market netback to $148.36/MWh compared to $131.36/MWh a year ago".

The ASX 200 energy stock also increased the proportion of its hydro and geothermal generation, helping to drive down the average generation cost.

And Contact Energy continues to progress its renewable energy projects.

Those include its Glenbrook-Ohurua BESS and the Kowhai Park Solar developments, due online by the second quarter of calendar year 2026. Management expects Contact's Te Mihi Stage 2 geothermal project to come online in the third quarter of 2027.

Commenting on the ASX 200 stock's renewable developments at the company's FY 2025 results release in August, Contact CEO Mike Fuge said:

This year demonstrated the critical role geothermal energy plays in the country. This is baseload renewable electricity, not dependent on the weather. Our NZ$1.2 billion investment in Tauhara and Te Huka 3 all comes down to this: delivering the right projects, at the right time, for New Zealand.

The post Macquarie tips 23% upside for this dividend paying $8 billion ASX 200 energy stock appeared first on The Motley Fool Australia.

Four ASX shares that are falling more than most today are listed below. Here's why they are dropping:

ANZ Group Holdings Ltd (ASX: ANZ)

The ANZ share price is down almost 1% to $32.93. This morning, the big four bank revealed that it has reached an agreement with the Australian Securities and Investments Commission (ASIC) to resolve five separate regulatory investigations. This will see ANZ pay a total of $240 million in penalties. The largest penalty relates to its role as duration manager in the execution of a 2023 issuance of 10-year Treasury Bonds by the Australian Office of Financial Management (AOFM). The bank stated: "It is ANZ's view that no loss was caused to the Commonwealth from its trading as duration manager. However, given ANZ could have executed its role as duration manager with better communication, ANZ has offered to pay the AOFM the revenue it earned as duration manager as a goodwill gesture."

Ausgold Ltd (ASX: AUC)

The Ausgold share price is down 2.5% to 91.5 cents. This is despite the release of a drilling update from the gold developer this morning. Ausgold revealed that it is about to launch a major new gold drilling program at the 100%-owned 2.44Moz Katanning Gold Project (KGP) and across its extensive highly prospective greenstone tenure in the south-west of Western Australia. Executive chairman, John Dorward, stated: "This is one of the most significant drill programs undertaken by Ausgold to date. Following the recently settled land access arrangement, we are combining low-risk, high-reward Resource growth at the KGP with an aggressive regional campaign that aims to unlock the significant discovery upside of our project."

Contact Energy Ltd (ASX: CEN)

The Contact Energy share price is down 2% to $8.24. This follows the release of a monthly operating report from the energy company. It revealed that its consumer business recorded mass market electricity and gas sales of 454GWh for the month of August. This is down slightly from 456GWh a year earlier.

Ora Banda Mining Ltd (ASX: OBM)

The Ora Banda Mining share price is down 10% to $1.04. This appears to have been driven by a bearish broker note out of Macquarie this morning. According to the note, the broker has downgraded the gold miner's shares from outperform all the way down to an underperform rating with an unchanged price target of 95 cents. This follows the release of its mineral resources and ore reserve statement at the end of last week.

The post Why ANZ, Ausgold, Contact Energy, and Ora Banda shares are dropping today appeared first on The Motley Fool Australia.

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).

View Original Announcement

The post ASX 200 energy stock shows continued progress on renewables appeared first on The Motley Fool Australia.

Contact Energy is a diversified and integrated energy company. It owns a fleet of hydro, geothermal, and gas-fired generation assets, which produce close to 25% of New Zealand's electricity. It also retails electricity and gas to nearly half a million customers.

Its share price has risen 7.62% over the last year. For context, this is slightly below the S&P/ASX 200 Utilities (ASX: XUJ) index. 

However, Macquarie sees strong upside for this ASX utilities stock. The broker has placed an "outperform" rating on the company. 

Here's what the broker had to say. 

Strong upside 

Macquarie resumed coverage of Contact Energy after its Manawa Energy acquisition, which it sees as a good strategic fit that adds value and boosts earnings, with expected long-term benefits including $40 million in annual synergies by 2028. 

The deal is seen as financially positive, and while near-term guidance is cautious, Macquarie believes earnings could be stronger due to rising electricity prices and forecasts a small increase in dividends over the next two years.

We see CEN's normalised EBITDAF forecast as conservative due its use of a medium term wholesale electricity price of $120/MWh real vs current futures of ~$170/MWh (MacqE $140/MWh) – almost a $100m differential. Note, since the deal was announced, the NZ wholesale electricity futures curve has firmed by ~25%.

Macquarie also notes that the acquisition wasn't heavily contested, likely due to regulatory hurdles, and sees Contact Energy's conservative profit forecasts as leaving room for upside if electricity prices remain strong.

Updated price target 

It's important to note that Contact Energy's primary reporting currency is NZD.

When issuing target prices, analysts usually use the company's base currency for consistency with its financial reporting, earnings, and valuation models.

Macquarie's updated price target is NZD $11.53. 

Contact Energy shares closed trading last week at $9.10 NZD. 

This indicates an upside of 26%. 

Speaking on the updated price target, Macquarie said its price target moves to $11.53 (previously $11.20) on incorporation of MNW acquisition (~$0.25ps) and incorporation of monthly op stats.

We see the balance of risks in our catalysts (above) skewed to the upside. We resume coverage with an Outperform recommendation (prev O/P).

It's worth noting this ASX utilities stock also currently offers an attractive dividend yield of 4.21%. 

The post Macquarie predicts 26% upside for this ASX utilities stock appeared first on The Motley Fool Australia.

Meanwhile, the S&P/ASX 200 Index (ASX: XJO) lost 0.27% to finish at 8,580.1 points on Friday.

The utilities sector's bump was a substantial outperformance, with its nearest competitor, ASX 200 materials, up just 0.8%.

This may indicate a shift to defensive shares, given that the utilities sector is known for stable returns and dividends.

Utilities delivered the highest dividends of all 11 market sectors in FY25 at 6.17%.

Last week, US President Donald Trump extended the 90-day reprieve on the full range of US reciprocal tariffs to 1 August.

Trump also stated that a new tariff on imported pharmaceuticals into the US from next year may be set as high as 200%.

This impacted several ASX pharma stocks, including Australia's biggest listed healthcare company, CSL Ltd (ASX: CSL).

The market was also surprised last week when the Reserve Bank of Australia decided to keep interest rates on hold.

The board members were split 6:3, with six voting for rates to stay on hold pending quarterly inflation data due out on 30 July.

Three board members voted for a rate cut.

In a statement, the RBA said:

With the cash rate 50 basis points lower than five months ago and wider economic conditions evolving broadly as expected, the Board judged that it could wait for a little more information to confirm that inflation remains on track to reach 2.5 per cent on a sustainable basis

The next board meeting to discuss interest rates is scheduled for 11-12 August.

Only five of the 11 ASX 200 market sectors closed out last week in the green.

Let's recap.

Utilities shares led the ASX sectors last week

Just 21 companies make up the ASX 200 utilities sector.

Let's review the performance of the seven largest players by market cap.

Origin Energy Ltd (ASX: ORG) shares surged 8.6% to $11.75. The Origin share price reached a 10-year high of $11.78 on Friday.

There has been no price-sensitive news regarding Origin shares since 26 May when the company upgraded its FY25 guidance.

However, two top brokers issued new notes on Origin shares last week.

Macquarie retained its neutral rating but raised its 12-month price target from $10.12 to $10.94 a share.

Meanwhile, Morgan Stanley retained its underweight rating and $9.46 price target.

Shares in ASX 200 energy infrastructure group, APA Group (ASX: APA), fell 0.84% to $8.29 apiece.

On Wednesday, APA announced it had finalised agreements with CS Energy to deliver a natural gas pipeline connecting APA's Roma
Brisbane Pipeline with CS Energy's proposed Brigalow Peaking Power Plant in Queensland.

Mercury NZ Ltd (ASX: MCY) shares lost 0.18% of their value to close at $5.68 on Friday.

The New Zealand-based electricity, gas, and telco services retailer will release its full-year FY25 results on 19 August.

Meridian Energy Ltd (ASX: MEZ) shares rose by 0.18% to $5.42 per share.

The New Zealand-based renewable energy company will release its full-year FY25 results on 27 August.

The AGL Energy Limited (ASX: AGL) share price lost 2.94% to finish the week at $9.58.

Earlier this month, we reported that UBS has a neutral rating on this ASX 200 utility share with a price target of $11.50.

Genesis Energy Ltd (ASX: GNE) shares rose 2.82% to $2.19 apiece last week.

The Contact Energy Ltd (ASX: CEN) share price fell 2.24% to $8.28 on Friday.

ASX 200 market sector snapshot

Here's how the 11 market sectors stacked up last week, according to CommSec data.

Over the five trading days:

The post ASX 200 utilities shares outperform: Are investors switching to defensives? appeared first on The Motley Fool Australia.

But did you know that last year it was ASX 200 utilities shares that delivered the highest dividend returns?

Utilities produce and deliver basic essential services such as electricity, natural gas, and water. 

As we recently reported, the total return of the S&P/ASX 200 Utilities Index (ASX: XUJ) last year was 17.48%.

Dividends made up a considerable 7.05% of that total return — the highest of the 11 market sectors.

That's also well above the long-term average dividend yield of the S&P/ASX 200 Index (ASX: XJO), which is 4%.

So, what's the outlook for ASX utilities dividends this year?

Dividend forecasts for ASX 200 utilities shares

The utilities sector is the smallest of the 11 ASX 200 market sectors. It's comprised of just 22 companies.

In this article, I'll focus on the seven largest ASX 200 utilities shares by market capitalisation.

The following table shows the consensus analysts' forecasts for 2025 dividends, as published on the CommSec trading platform.

I've calculated the dividend yields they represent based on Tuesday's closing share prices.

I have also included the dividend amounts paid in 2024 so you can compare them to the 2025 forecasts.

These ASX 200 utilities shares are listed in order of market cap from biggest to smallest.

As you can see, APA Group is the ASX 200 utilities share expected to pay the highest dividend yield among this group of stocks in the new year.

APA is Australia's largest energy infrastructure company with a $26 billion portfolio of assets.

It owns and/or operates an extensive range of gas, electricity, solar, and wind assets.

The company will release its 1H FY25 results on 24 February.

Broker ratings on utilities shares

Macquarie has an outperform rating on APA shares with a 12-month share price target of $8.13.

The APA share price has fallen by just over 20% over the past 12 months to $6.65 per share.

My colleague, James Mickeloboro, says APA shares are worth considering for income investors while they're down.

He points out that APA is one of the most reliable dividend payers on the Australian share market with almost 20 consecutive years of dividend increases.

Goldman Sachs has a neutral rating on Origin Energy with a 12-month price target of $10.40.

Origin shares have risen by 22.5% over the past year to $10.23 per share.

While positive on the company, Goldman says the Origin share price is fully valued now.

The broker says:

ORG remains well positioned to benefit from Australia's energy transition with the NEM's largest flexible gas generation fleet, strong cash flow from APLNG, and potential upside through Octopus, though we consider the stock fully valued after recent strong performance with risk for negative consensus valuation revisions on higher cash tax payments in FY25.

Goldman Sachs also has a neutral rating on AGL shares with a 12-month share price target of $11.65.

The AGL share price closed at $11.47 yesterday. The ASX 200 utilities share is up 44% over 12 months.

The post Which ASX 200 utilities share will pay the best dividend yield in 2025? appeared first on The Motley Fool Australia.

After gaining 8.4% in 2023, the All Ordinaries Index (ASX: XAO) is down 0.8% since the closing bell on 29 January.

But the year is young. And there are literally thousands of potentially profitable ASX shares to investigate.

If you're looking to invest in companies that, atop hopefully gaining in value, also work to improve the world, then you'll want to know what Andy Gracey, portfolio manager of the Emerging Companies and the Australian Shares Fund at Australian Ethical Investment, told The Motley Fool earlier this week.

And according to Gracey, investing in ethical ASX shares shouldn't lead to lower returns.

"We believe investors don't have to sacrifice investment returns while investing in more progressive companies that leave the world in a better place," he said.

With that said…

ASX share leading the renewable charge

The first stock Gracey believes is positioned to outperform in 2024 is ASX energy share Contact Energy Ltd (ASX: CEN).

"We remain believers in Contact Energy which is a renewable energy generator and retailer out of New Zealand," Gracey told us.

He noted that New Zealand's energy transition now sees some 80% of the nation's energy generated from renewable sources.

Gracey added:

We believe the transition will grow the overall energy market 3% to 4% per annum as electric vehicles and electrical applications progressively displace petrol and diesel. Contact Energy trades on reasonable earnings multiples with a credible dividend yield.

The ethical ASX share has gained 2% over the past 12 months.

As of Thursday's closing price, Contact Energy shares trade on a trailing dividend yield of 4.1%, unfranked.

An ethical ASX travel stock

The second ethical ASX share Gracey is bullish on for 2024 is travel stock Webjet Ltd (ASX: WEB).

"Webjet is both a domestic online travel booking business and a much larger business to business hotels, and beds booking business," he said.

He said his fund is "attracted to the growing long-term thematic around leisure travel and particularly the WebBeds hotel rooms market-place business".

As for the growth outlook, he added, "We believe WebBeds can grow its circa 4% global market share into a bigger business and investors are paying a reasonable earnings multiple for the business today."

The Webjet share price is up 6% over 12 months. The company suspended its dividend payments in 2020 following the outbreak of the COVID pandemic.

A pivotal year ahead for this ASX share

The third ethical ASX share Gracey has an optimistic outlook on is biotech company Immutep Ltd (ASX: IMM). His fund has a holding in the immunotherapy drug developer.

According to Gracey, "Immutep should have a pivotal year in 2024. We expect to see continued strong clinical data in lung cancer as well as head and neck cancer treatments."

He added:

Immutep is the number two globally in clinical development of a new class of immunotherapy called LAG3. To date this has shown to enhance the clinical efficacy of cancer treatments, with few safety issues when combined with the global leading immunotherapy Keytruda, which is owned by pharmaceutical giant Merck.

This ethical ASX share has gained 21% over the past 12 months.

The post 3 ethical ASX shares poised to outperform in 2024 appeared first on The Motley Fool Australia.

That doesn't make sense, right?

Why did ASX renewable shares fall last year?

Wentworth Williamson analyst Martin Marais sums up the problem. He says the renewables industry is currently "incapable of rapidly ramping up production after years of underinvestment".

As a result, "the supply/demand imbalance may take many months, if not years, to fix".

Although climate change is firmly on the agenda in most western nations today, that doesn't mean the renewables sector is in a position to respond to it immediately.

Some of the businesses we refer to as ASX renewable shares are brand new companies, while others are existing energy providers. Both are having to spend oodles of cash to build their renewable energy offerings to meet this sudden demand.

A ramp-up in costs isn't so good when there isn't yet corresponding revenue growth to offset it. And that means profit warnings, according to RC Global chief investment officer Roy Chen.

In a recent article in the Australian Financial Review (AFR), Chen said:

There are some of these clean energy companies that have issued profit warning after profit warning, and warned profit margins could even turn negative because costs are becoming so much.

These are some of the factors making market watchers a bit wary of ASX renewable shares for now.

A snapshot of falling prices in FY22

For this article, we're defining ASX renewable shares as companies producing clean power. Let's take a look at how some of the big players did in FY22.

• The Contact Energy Limited (ASX: CEN) share price dropped 14.5% in FY22
• The Meridian Energy Ltd (ASX: MEZ) share price fell 15% in FY22
• The Mercury NZ Ltd (ASX: MCY) share price tumbled 32% in FY22
• The Infratil Ltd (ASX: IFT) share price lost 6%. (Infratil isn't a power producer but it's a major investor in green energy assets with a market cap of $5 billion. So, it's worth including here)
• Genesis Energy Ltd (ASX: GNE) shares fell 24.5% in value in FY22.

There's no index for ASX renewable shares but the VanEck Global Clean Energy ETF (ASX: CLNE) provides a good proxy. Units in the exchange-traded fund lost 22% in value during FY22.

The post Why did ASX renewable shares fall while electricity prices increased in FY22? appeared first on The Motley Fool Australia.

And perhaps pay some healthy dividends along the way.

But that's not the sole concern for many investors, who also seek out ASX shares that tick the environmental, social, and governance (ESG) boxes.

Socially conscious investors, for example, want to ensure a company's workers are treated and paid fairly all along the supply chains.

Importantly, they also want to invest in companies with strong environmental awareness, generally avoiding ASX shares involved in the fossil fuel sector.

But 2022 has thrown up a fresh dilemma for ESG investors. One that's also ensnared Australia's super funds.

Maximise ASX share gains or invest ethically?

Energy costs, as you'll know if you've been to the servo lately, have rocketed in 2022.

Crude oil, gas and coal prices were already trending higher heading into the new year, as the global reopening saw demand take-off faster than new supply could keep up.

Then oil-rich Russia's invasion of Ukraine and the resulting sanctions against Russia put a rocket under fossil fuel prices.

Crude oil hit 13-year highs last month and coal traded at all-time highs. Today fossil fuel costs remain at multi-year highs.

And that's seen ASX shares digging coal from the ground offer the best returns on the All Ordinaries Index (ASX: XAO) this year.

The super dilemma

Which brings us to the Your Future, Your Super performance benchmarking initiated by the Australian Prudential Regulation Authority (APRA) in July 2021. The regime applies to 80 MySuper products.

The system scores the super funds' performance against a set of benchmarks. Underperforming funds are publicly named and told to up their game. Those who fail to match or beat the benchmark for 2 consecutive years can be banned from taking on new funds.

And it's this benchmarking, said Jens Peers, CEO of ethical investment fund manager Mirova US, that may discourage super funds from investing in ASX shares involved in renewable energy, as these may be longer-term plays not yet returning big gains.

According to Peers (quoted by The Australian):

The Your Future, Your Super regulation has a short-term focus on single risk management… The world is going to a low-carbon economy. There is no doubt in my mind that fossil fuels will suffer and find it very difficult to benefit financially. Renewables will do a lot better, but there will be times — such as this year — when fossil fuel companies outperform them.

Peers said APRA's benchmarking process encourages super funds looking at ASX shares to "all move in the same direction and take no convictions in their portfolios… If you have this short-term focus on investment returns, super fund trustees and the investment personnel at big super funds may not want to make that commitment."

"Some of these companies may not be sustainable or environmentally friendly," he added. "Some people really care how their money is invested and they want to see that it is being done in a way which will create an impact."

To give you a better idea of the dilemma facing super funds under APRA's benchmarking microscope, here's how ASX shares in renewable energy stacked up against their fossil fuel peers in the first quarter of 2022.

And we'll use the 0.1% gain posted by the All Ords in Q1 as our benchmark.

How ASX shares in renewables compare to their fossil fuel peers

ESG investors, brace yourself.

Throwing our focus on short-term investment returns, the numbers for Q1 aren't good.

First, we'll look at best performing ASX shares in the renewable energy sector.

Mercury NZ Ltd (ASX: MCY) generates more than 15% of New Zealand's electricity and all of that electricity is generated from renewable sources. The company has a market cap of $7.5 billion and pays a 3.2% trailing dividend yield, unfranked.

The Mercury share price lost 2.4% in Q1.

Next up we have ASX renewable energy share Contact Energy Limited (ASX: CEN). The New Zealand-based electricity provider produces some 85% of its electricity from renewable hydro and geothermal stations. The company has a market cap of $5.7 billion and pays an unfranked 4.4% trailing dividend yield.

The Contact Energy share price dipped 1.2% in Q1.

The best performing ASX share in renewable energy was Meridian Energy Ltd (ASX: MEZ). With a market cap of $11.4 billion, Meridian is New Zealand's largest electricity generator. It generates 90% of its energy from hydro with the rest from wind. The company pays a 3.5% trailing dividend yield, unfranked.

The Meridian Energy share price beat the All Ords benchmark, gaining 3.4% over the first quarter.

As for the fossil fuel stocks?

The super dilemma becomes clear when you look at the comparative performance of ASX shares in the fossil fuel space.

In fact, the top 3 performers on the All Ords in Q1 were all coal stocks.

Coronado Global Resources Inc (ASX: CRN) produces metallurgical coal, which is used in the production of steel. The company has a market cap of $3.8 billion and doesn't currently pay a dividend.

Coronado shares gained 61% in Q1.

Also rocketing higher and unlikely to make the list of ASX shares receiving the ESG tick of approval was Yancoal Australia Ltd (ASX: YAL). Yancoal is Australia's largest pure-play coal producer, managing and operating a broad portfolio of coal mines across the country. Yancoal has a market cap of $6.7 billion and pays a 10.4% trailing dividend yield.

The Yancoal share price leapt 71% higher in the March quarter.

Which brings us to the best performing ASX share in Q1, Stanmore Resources Ltd (ASX: SMR). In April 2021, Stanmore Resources was rebranded from its former name, Stanmore Coal, which tells you how the company earns its revenue. Stanmore has a market cap of $1.6 billion and pays a fully franked 4.3% dividend yield.

And the Stanmore Resources share price rocketed 83% in the first quarter.

With APRA running the yardstick over their comparative performance, you can see the ESG dilemma facing fund managers in deciding which ASX shares to add and which to cut from their portfolios.

The post Maximise ASX share gains or invest ethically? The SUPER dilemma appeared first on The Motley Fool Australia.