February 2019 Operating Report

Monthly Operating Report
February 2019

For the month of February 2019
»The Customer business recorded:
•Mass market electricity and gas sales of 282 GWh
(February 2018: 272 GWh)
•Mass market electricity and gas netback of
$92.70/MWh (February 2018: $89.98/MWh)
»The Wholesale business recorded:
•Contracted Wholesale electricity sales, including
that sold to the Customer business, totalled 614
GWh (February 2018: 594 GWh)
•Electricity and steam net revenueof $76.38/MWh
(February 2018: $70.22/MWh)
•Electricity generated (or acquired) in the month of
690 GWh (February 2018: 665 GWh)
•The unit generation cost, which includes acquired
generation was $47.35/MWh (February 2018:
$33.77/MWh)
•Own generation cost in the month of
$34.91/MWh (February 2018: $31.24/MWh)
February overview
Operating reportContact Energy Limited
2
»Otahuhufutures settlement wholesale price for the 2
nd
quarter of 2019 (ASX):
•As at 11 March 2019: $200/MWh
•As at 28 February 2019: $150/MWh
•As at 31 January 2019: $132/MWh
»As at 11 March 2019, South Island controlled storage
was 83% of mean (28 February 2019: 88%) and North
Island controlled storage was 71% of mean (28
February 2019: 73%)
•As at 11 March 2019, total Clutha scheme storage
(including uncontrolled storage) was 61% of mean
•Inflows into Contact’s Clutha catchment for
February 2019 were 82% of mean (January 2019:
102%, December 2018: 69%, November 2018:
106%)

Hydro storage and forward prices
New Zealand controlled hydro storage against mean
Operating reportContact Energy Limited
Benmore ASX futures settlement
Otahuhu ASX futures settlement
3
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
Mar
18
Apr
18
May
18
Jun
18
Jul
18
Aug
18
Sep
18
Oct
18
Nov
18
Dec
18
Jan
19
Feb
19
GWh
South Island ActualNorth Island Actual
South Island MeanNational Mean
0
20
40
60
80
100
120
140
160
CY19CY20CY21CY22
$/MWh
29/06/201831/01/201928/02/2019
0
20
40
60
80
100
120
140
160
CY19CY20CY21CY22
$/MWh
29/06/201831/01/201928/02/2019

Wholesale market
Wholesale electricity pricing
Operating reportContact Energy Limited
Distribution of wholesale market price by trading periods
Benmore node
Otahuhu node
4
0
50
100
150
200
250
300
JulAugSepOctNovDecJanFebMarAprMayJun
$/MWh
FY18 BENFY19 BENFY18 OTAFY19 OTA
0%
20%
40%
60%
80%
100%
<$35$36-$60$61-$85$86-$110$111-$135$136-$160>$160
% of trading periods
Feb-19Feb-18Jan-19
0%
20%
40%
60%
80%
100%
<$35$36-$60$61-$85$86-$110$111-$135$136-$160>$160
% of trading periods
Feb-19Feb-18Jan-19

Electricity demand
Operating reportContact Energy Limited
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Source: Contact and Electricity Authority grid demand (reconciled) http://www.emi.ea.govt.nz
Regional demand change (%) on February 2018
Total national demand (FY17, 18 and 19)
»New Zealand electricity demand was up 4.7% on February 2018 (up 2.0% on
February 2017)
•Cumulative 12 months demand for March 2018 to February 2019 of
41,368 GWh is up by 0.3% on the prior comparative period.
Month Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
(1%)
4%
0%
6%
10%
8%
49%
4%
(3%)
(1%)
(4%)
0%
Year
1%
1%
22%
15%
14%
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
1617181617181617181617181617181617181718191718191718171817181718
GWh
North IslandSouth IslandNZAS

Contact’s Wholesale business performance
Generation mix, gross sales position and unit generation cost (FY18 and 19)
Operating reportContact Energy Limited
6
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Year
-
5
10
15
20
25
30
35
40
45
50
-
100
200
300
400
500
600
700
800
900
17 18 17 18 17 18 17 18 17 18 17 18 18 19 18 19 18 19 18 19 18 19 18 19
$/MWh
GWh
GeothermalHydroThermalAcquired generationContracted electricity salesUnit generation cost (RHS)

Retail sales volumes and netback (FY18 and 19)
Contact’s Customer business performance
7
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Year
Operating reportContact Energy Limited
-
20
40
60
80
100
0
100
200
300
400
500
600
17 18 17 18 17 18 17 18 17 18 17 18 18 19 18 19 18 19 18 19 18 19 18 19
$/MWh
GWh
Mass market electricity salesRetail gas salesNetback

Contact’s operational performance
8
Operating reportContact Energy Limited
Measure
The month ended The month ended The month ended
Eight months
ended
Eight months
ended
February 19February 18January 19February 19February 18
CustomerMass market electricity salesGWh
237 234 239 2,350 2,389
Retail gas salesGWh
44 37 42 571 523
Mass market electricity and gas salesGWh
282 272 281 2,921 2,912
Average electricity sales price$/MWh
249.78 244.89 256.56 244.72 242.47
Electricity direct pass thru costs$/MWh
(125.41)(121.44)(131.89)(119.50)(119.14)
Cost to serve$/MWh
(22.53)(23.82)(23.52)(18.18)(18.81)
Customer netback$/MWh
92.70 89.98 92.25 91.82 90.54
Energy cost$/MWh
(72.61)(72.00)(73.27)(71.85)(70.91)
Actual electricity line losses%
8%6%10%8%8%
Retail gas salesPJ
0.2 0.2 0.2 2.0 1.7
Electricity ICPs (rounded to the nearest 500)#
408,000 415,000 406,000
Gas ICPs (rounded to the nearest 500)#
65,500 64,500 65,500
WholesaleElectricity sales to Customer businessGWh
258 249 267 2,542 2,584
Electricity sales to Commercial and IndustrialGWh
250 261 270 2,091 2,282
Electricity CFD salesGWh
106 84 117 931 851
Contracted electricity salesGWh
614 594 654 5,564 5,717
Steam salesGWh
39 46 55 445 419
Total electricity and steam net revenue$/MWh
76.38 70.22 71.68 76.96 73.18
C&I netback (at the ICP)$/MWh
81.38 78.79 76.71 81.98 81.51
C&I line losses%
4%3%3%4%4%
Thermal generationGWh
66 113 63 964 1,384
Geothermal generationGWh
230 245 269 2,150 2,229
Hydro generationGWh
297 267 336 2,677 2,093
Spot electricity salesGWh
592 625 668 5,792 5,706
Electricity sales -DirectGWh
8 8 9 68 68
Acquired generationGWh
90 31 61 322 443
Electricity generated (or acquired)GWh
690 665 738 6,182 6,216
Unit generation cost (including acquired generation)$/MWh
(47.35)(33.77)(37.53)(36.29)(37.54)
Spot electricity purchasesGWh
(500)(501)(528)(4,566)(4,798)
CFD salesGWh
(106)(84)(117)(931)(851)
Spot exposed purchases / CFD settlementGWh
(606)(586)(645)(5,496)(5,649)
Spot revenue and settlement on acquired generation
(GWAP)
$/MWh
157.60 65.40 126.52 136.19 92.80
Spot purchases and settlement on CFDs sold (LWAP)$/MWh
(166.44)(69.81)(133.08)(140.86)(97.64)
LWAP/GWAP%
106%107%105%103%105%
Gas used in internal generationPJ
0.8 1.2 0.8 9.7 13.4
Gas storage net movement (extraction) / injectionPJ
(0.4)0.2 (0.0)(2.3)(1.1)

Keep in touch
Operating reportContact Energy Limited
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@ContactEnergy
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investor.centre@contactenergy.co.nz
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+64 4 462 1323
+64 21 072 8578
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Matthew Forbes -Investor Relations Manager
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