December 2019 Operating Report
Monthly Operating Report
December 2019
Putting our energy where it matters
Contact Energy / Monthly Operating Report
2
»The Customer business recorded:
•Mass market electricity and gas sales of 303 GWh(December
2018: 296 GWh)
•Mass market electricity and gas netback of $89.89/MWh
(December 2018: $89.16/MWh)
»The Wholesale business recorded:
•Contracted Wholesale electricity sales, including that sold to
the Customer business, totalled 639 GWh(December 2018:
641 GWh)
•Electricity and steam net revenueof $69.64/MWh(December
2018: $74.10/MWh)
•Electricity generated (or acquired) of 691 GWh(December
2018: 699 GWh)
•The unit generation cost, which includes acquired generation
was $30.13/MWh(December 2018: $41.67/MWh)
•Own generation cost in the month of $28.03/MWh
(December 2018: $28.13/MWh)
»Otahuhufutures settlement wholesale price for the 1
st
quarter of 2020 (ASX):
•As at 20 January 2020: $132/MWh
•As at 31 December 2019: $140/MWh
•As at 29 November 2019: $148/MWh
»As at 21 January, South Island controlled storage was
121% of mean (31 December 2019: 138%) and North
Island controlled storage was 136% of mean (31
December 2019: 137%)
•As at 21 January 2020, total Clutha scheme
storage (including uncontrolled storage) was
98% of mean
•Inflows into Contact’s Clutha catchment for
December 2019 were 204% of mean (November
2019: 174%, October 2019: 92%, September
2019: 52%, August 2019: 74%)
For the month of December 2019
0
500
1000
1500
2000
2500
3000
3500
4000
4500
JanFebMarAprMayJunJulAugSepOctNovDec
GWh
South Island ActualNorth Island Actual
South Island MeanNational Mean
New Zealand controlled hydro storage against mean
OtahuhuASX futures settlement
Contact Energy / Monthly Operating Report
3
0
50
100
150
CY20CY21CY22CY23
$/MWh
28/06/201929/11/201931/12/2019
0
50
100
150
CY20CY21CY22CY23
$/MWh
28/06/201929/11/201931/12/2019
CY2019
Otahuhu
Benmore
Wholesale electricity pricing
Otahuhu
Contact Energy / Monthly Operating Report
4
Benmore
Distribution of wholesale market price by trading periods
0%
20%
40%
60%
<$35$36-$60$61-$85$86-$110$111-$135$136-$160>$160
% of trading
periods
Dec-19Dec-18Nov-19
0%
20%
40%
60%
<$35$36-$60$61-$85$86-$110$111-$135$136-$160>$160
% of trading
periods
Dec-19Dec-18Nov-19
0
50
100
150
200
250
300
$/MWh
FY19 BENFY20 BENFY19 OTAFY20 OTA
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Total national demand
Contact Energy / Monthly Operating Report
5
Regional demand change (%) on December 2018
»New Zealand electricity demand was up 4.9% on December 2018 (up 0.1% on
December 2017):
•Cumulative 12 months demand for January 2019 to December 2019 of
41,698 GWh is up by 1.3% on the prior comparative period.
Source: Contact and Electricity Authority grid demand (reconciled) http://www.emi.ea.govt.nz
0%
1%
4%
2%
4%
0%
46%
76%
2%
6%
0%
2%
10%
(3%)
(0%)
(1%)
13%
8%
FY18, 19 and 20 respectively
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
JulAugSepOctNovDecJanFebMarAprMayJun
GWh
North IslandSouth IslandNZAS
Regional demand is excluding NZAS
Wholesale
Contact Energy / Monthly Operating Report
6
Customer
Generation mix, gross sales position and unit generation cost (FY19 and 20 respectively)
Retail sales volumes and netback (FY19 and 20 respectively)
-
10
20
30
40
50
60
70
80
90
100
-
100
200
300
400
500
600
700
800
900
1,000
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
$/MWh
GWh
GeothermalHydroThermal
Acquired generationContracted electricity salesUnit generation cost (RHS)
-
20
40
60
80
100
120
0
100
200
300
400
500
600
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
$/MWh
GWh
Mass market electricity salesRetail gas salesNetback
Contact Energy / Monthly Operating Report
7
Measure
The month ended The month ended The month ended Six months endedSix months ended
December 19December 18November 19December 19December 18
CustomerMass market electricity salesGWh251 246 255 1,861 1,874
Retail gas salesGWh52 50 58 488 485
Mass market electricity and gas salesGWh303 296 313 2,349 2,359
Average electricity sales price$/MWh249.17 250.48 249.66 242.02 242.57
Electricity direct pass thru costs$/MWh(125.05)(129.49)(122.56)(117.06)(117.17)
Cost to serve$/MWh(19.10)(23.04)(22.77)(17.47)(17.02)
Customer netback$/MWh89.89 89.16 90.48 90.47 91.66
Energy cost$/MWh(63.56)(58.52)(67.50)(77.72)(71.59)
Actual electricity line losses%4%7%7%6%7%
Retail gas salesPJ0.2 0.2 0.2 1.8 1.7
Electricity ICPs#410,000 406,000 410,500
Gas ICPs#65,500 65,000 65,500
WholesaleElectricity sales to Customer businessGWh262 266 274 1,986 2,017
Electricity sales to Commercial and IndustrialGWh197 260 198 1,202 1,572
Electricity CFD salesGWh179 116 124 980 708
Contracted electricity salesGWh639 641 596 4,168 4,296
Steam salesGWh66 56 65 343 351
Total electricity and steam net revenue$/MWh69.64 74.10 68.50 77.92 77.84
C&I netback (at the ICP)$/MWh69.82 77.31 70.74 82.92 82.99
C&I line losses%5%4%5%5%4%
Thermal generationGWh44 38 23 825 836
Geothermal generationGWh276 227 248 1,649 1,652
Hydro generationGWh345 365 413 1,886 2,045
Spot electricity salesGWh665 631 684 4,359 4,532
Electricity sales -DirectGWh10 9 9 50 51
Acquired generationGWh16 59 24 208 171
Electricity generated (or acquired)GWh691 699 718 4,617 4,754
Unit generation cost (including acquired generation)$/MWh(30.13)(41.67)(23.90)(37.12)(34.49)
Spot electricity purchasesGWh(450)(516)(462)(3,138)(3,538)
CFD sale settlementsGWh(179)(116)(124)(980)(708)
Spot exposed purchases / CFD settlementGWh(629)(632)(586)(4,118)(4,246)
Spot revenue and settlement on acquired generation (GWAP)$/MWh58.31 102.49 98.41 106.10 134.58
Spot purchases and settlement on CFDs sold (LWAP)$/MWh(63.00)(107.42)(105.58)(111.97)(138.40)
LWAP/GWAP%108%105%107%106%103%
Gas used in internal generationPJ0.6 0.6 0.4 7.9 8.1
Gas storage net movement (extraction) / injectionPJ0.6 0.2 0.1 0.5 (2.0)
Contact Energy / Monthly Operating Report
8
investor.centre@contactenergy.co.nz
contact.co.nz/aboutus/investor-centre
+64 21 072 8578
Investors
Matthew Forbes –GM Corporate Finance
contact.co.nz
@ContactEnergy
Linkedin.com/company/contact-energy-ltd
Facebook.com/contactenergy
Youtube.com/ContactEnergy
To find out more about Contact Energy
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.
Other issuers discussed similar conditions around this time
Matched by meaning across NZX announcement text, not keywords — based on our semantic index of announcement bodies.
- MEL — Meridian Energy Limited: Meridian Energy monthly operating report for December 20192020-01-14
“MARKET DATA ▪National electricity demand in December 2019 was 4.9% higher than the same month last year ▪December 2019 saw wet and cool South Island conditions, while the North Island was warmer and drier than average ▪Demand in the last 12 months was 1.3% higher than the pr…”
- MEL — Meridian Energy Limited: Meridian Energy monthly operating report for February 20202020-03-17
“MARKET DATA ▪National electricity demand in February 2020 was 2.7% higher than the same month last year ▪February 2020 was warm and dry across much of the country, contrasted by high rainfall and flooding in the lower South Island ▪Demand in the last 12 months was 1.1% high…”
- MEL — Meridian Energy Limited: Meridian Energy monthly operating report for October 20192019-11-14
“MARKET DATA ▪National electricity demand in October 2019 was 1.5% higher than the same month last year ▪October 2019 saw near average temperatures, with the exception of cooler conditions in the lower South Island. Rainfall was variable and soil moisture was near normal acr…”