Monthly Operating Report

December 2016

December overview

» For the month of December 2016 Contact recorded:

  • Electricity, gas and steam sales of 682 GWh (December 2015: 709 GWh)

  • Netback of $73.18/MWh (December 2015:

    $78.28/MWh)

  • Cost of energy was $23.83/MWh (December 2015:

    $19.75/MWh) as compensation related to the Te Mihi power station recognised in December 2015 did not recur.

    » Otahuhu futures settlement wholesale price for the 1st quarter of 2017 (ASX):

  • As at 25 January 2017: $53/MWh

  • As at 31 December 2016: $60/MWh

  • As at 30 November 2016: $63/MWh

» As at the 25th of January 2017, South Island storage was 117% of mean (31 December: 111%) and North Island storage was 136% of mean (31 December: 138%)

» Contact's financial results for the six months ending 31 December 2016 will be released prior to the market opening on Monday, 13 February 2017.

Operating report Contact Energy Limited 2

Hydro storage and forward prices

New Zealand hydro storage against mean

Otahuhu ASX futures settlement

4,000

3,500

3,000

GWh

2,500

2,000

1,500

1,000

500

-

Jan 16

Feb 16

Mar 16

Apr 16

May 16

Jun 16

Jul 16

Aug 16

Sep 16

Oct 16

Nov 16

Dec 16

80

70

60

$/MWh

50

40

30

20

10

0

CY17 CY18 CY19 CY20

30/06/2016 30/11/2016 30/12/2016

Benmore ASX futures settlement

80

70

60

$/MWh

50

40

30

South Island Actual North Island Actual

South Island Mean National Mean

20

10

0

CY17 CY18 CY19 CY20

30/06/2016 30/11/2016 30/12/2016

Operating report Contact Energy Limited 3

Wholesale market

Wholesale electricity pricing

Distribution of wholesale market price by trading periods

Otahuhu node

80

% of trading periods

50%

7040%

Dec 16 Dec 15 Nov 16

30%

60

20%

50 10%

$/MWh

0%

40 $85

30

2015 BEN 2016 BEN 2015 OTA 2016 OTA

20

10

Benmore node

% of trading periods

50%

40%

30%

20%

Dec 16 Dec 15 Nov 16

0

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

10%

0%

$85

Operating report Contact Energy Limited 4

Contact Energy Ltd. published this content on 31 December 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 27 January 2017 01:29:11 UTC.

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