February 2020 Operating Report
Monthly Operating Report
February 2020
Putting our energy where it matters
Contact Energy / Monthly Operating Report
2
»The Customer business recorded:
•Mass market electricity and gas sales of 239 GWh (February
2019: 237 GWh)
•Mass market electricity and gas netback of $93.15/MWh
(February 2019: $92.70/MWh)
»The Wholesale business recorded:
•Contracted Wholesale electricity sales, including that sold to
the Customer business, totalled 629 GWh (February 2019: 614
GWh)
•Electricity and steam net revenueof $76.62/MWh (February
2019: $76.38/MWh)
•Electricity generated (or acquired) of 730 GWh (February
2019: 690 GWh)
•The unit generation cost, which includes acquired generation
was $34.55/MWh (February 2019: $47.35/MWh)
•Own generation cost in the month of $31.49/MWh
(February 2019: $34.91/MWh)
»Otahuhufutures settlement wholesale price for the 2
nd
quarter of 2020 (ASX):
•As at 16 March 2020: $117/MWh
•As at 29 February 2020: $118/MWh
•As at 31 January 2020: $120/MWh
»As at 16 March 2020, South Island controlled storage
was 109% of mean (29 February 2020: 116%) and
North Island controlled storage was 87% of mean (29
February 2020: 104%)
•As at 16 March 2020, total Clutha scheme
storage (including uncontrolled storage) was
127% of mean
•Inflows into Contact’s Clutha catchment for
February 2020 were 189% of mean (January
2020: 68%, December 2019: 204%,
November 2019: 174%)
For the month of February 2020
The COVID-19 virus is currently impacting a number of NZ listed issuers. Contact is not as directly affected by the immediate response efforts but is
maintaining a careful watch on the rapidly developing situation. Safety of our people and plant remains our top priority.
0
50
100
150
CY20CY21CY22CY23
$/MWh
28/06/201931/01/202028/02/2020
0
50
100
150
CY20CY21CY22CY23
$/MWh
28/06/201931/01/202028/02/2020
0
500
1000
1500
2000
2500
3000
3500
4000
4500
MarAprMayJunJulAugSepOctNovDecJanFeb
GWh
South Island ActualNorth Island Actual
South Island MeanNational Mean
New Zealand controlled hydro storage against mean
ASX futures settlement
Contact Energy / Monthly Operating Report
3
12 MONTHS
Otahuhu
Benmore
0
50
100
150
200
250
300
$/MWh
FY19 BENFY20 BENFY19 OTAFY20 OTA
0%
20%
40%
60%
<$35$36-$60$61-$85$86-$110$111-$135$136-$160>$160
% of trading
periods
Feb-20Feb-19Jan-20
0%
20%
40%
60%
<$35$36-$60$61-$85$86-$110$111-$135$136-$160>$160
% of trading
periods
Feb-20Feb-19Jan-20
Wholesale electricity pricing
Otahuhu
Contact Energy / Monthly Operating Report
4
Benmore
Distribution of wholesale market price by trading periods
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
4%
3%
3%
3%
3%
5%
8%
(7%)
4%
5%
4%
10%
14%
(0%)
3%
8%
3%
(1%)
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
JulAugSepOctNovDecJanFebMarAprMayJun
GWh
North IslandSouth IslandNZAS
Total national demand
Contact Energy / Monthly Operating Report
5
Regional demand change (%) on February 2019
»New Zealand electricity demand was up 2.7% on February 2019 (up 7.5% on
February 2018), February 2020 was a leap year (29 days):
•Cumulative 12 months demand for March 2019 to February 2020 of 41,812
GWh is up by 1.1% on the prior comparative period.
Source: Contact and Electricity Authority grid demand (reconciled) http://www.emi.ea.govt.nz
FY18, 19 and 20 respectively
Regional demand is excluding NZAS
-
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
-
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
$/MWh
GWh
GeothermalHydroThermal
Acquired generationContracted electricity salesUnit generation cost (RHS)
Wholesale
Contact Energy / Monthly Operating Report
6
Customer
Generation mix, gross sales position and unit generation cost (FY19 and 20 respectively)
Retail sales volumes and netback (FY19 and 20 respectively)
Contact Energy / Monthly Operating Report
7
Measure
The month ended The month ended The month ended Eight months endedEight months ended
February 20February 19January 20February 20February 19
CustomerMass market electricity salesGWh239 237 244 2,344 2,350
Retail gas salesGWh36 44 53 577 571
Mass market electricity and gas salesGWh275 282 297 2,921 2,921
Average electricity sales price$/MWh250.35 249.78 253.60 244.08 244.72
Electricity direct pass thru costs$/MWh(125.42)(125.41)(128.29)(119.08)(119.50)
Cost to serve$/MWh(22.90)(22.53)(21.79)(18.42)(18.18)
Customer netback$/MWh93.15 92.70 88.97 90.57 91.82
Energy cost$/MWh(84.66)(72.61)(76.45)(78.25)(71.85)
Actual electricity line losses%6%8%5%6%8%
Retail gas salesPJ0.1 0.2 0.2 2.1 2.0
Electricity ICPs#409,000 408,000 409,500
Gas ICPs#65,500 65,500 65,500
WholesaleElectricity sales to Customer businessGWh255 258 257 2,498 2,542
Electricity sales to Commercial and IndustrialGWh180 250 187 1,570 2,091
Electricity CFD salesGWh193 106 135 1,308 931
Contracted electricity salesGWh629 614 579 5,376 5,564
Steam salesGWh43 39 59 446 445
Total electricity and steam net revenue$/MWh76.62 76.38 73.51 77.29 76.96
C&I netback (at the ICP)$/MWh83.46 81.38 80.11 82.65 81.98
C&I line losses%5%4%5%5%4%
Thermal generationGWh114 66 44 983 964
Geothermal generationGWh257 230 282 2,188 2,150
Hydro generationGWh338 297 310 2,533 2,677
Spot electricity salesGWh709 592 636 5,704 5,792
Electricity sales -DirectGWh7 8 10 67 68
Acquired generationGWh14 90 9 231 322
Electricity generated (or acquired)GWh730 690 654 6,001 6,182
Unit generation cost (including acquired generation)$/MWh(34.55)(47.35)(31.93)(36.24)(36.29)
Spot electricity purchasesGWh(428)(500)(435)(4,001)(4,566)
CFD sale settlementsGWh(193)(106)(135)(1,308)(931)
Spot exposed purchases / CFD settlementGWh(621)(606)(570)(5,309)(5,496)
Spot revenue and settlement on acquired generation (GWAP)$/MWh60.05 157.60 85.63 98.27 136.19
Spot purchases and settlement on CFDs sold (LWAP)$/MWh(67.17)(166.44)(91.28)(104.51)(140.86)
LWAP/GWAP%112%106%107%106%103%
Gas used in internal generationPJ1.2 0.8 0.6 9.7 9.7
Gas storage net movement (extraction) / injectionPJ0.1 (0.4)0.7 1.4 (2.3)
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.
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