September 2019 Operating Report

Monthly Operating Report
September 2019

For the month of September 2019
»The Customer business recorded:
•Mass market electricity and gas sales of 398 GWh
(September 2018: 409 GWh)
•Mass market electricity and gas netback of
$91.74/MWh(September 2018: $92.36/MWh)
»The Wholesale business recorded:
•Contracted Wholesale electricity sales, including
that sold to the Customer business, totalled 712
GWh(September 2018: 721 GWh)
•Electricity and steam net revenueof $74.60/MWh
(September 2018: $72.37/MWh)
•Electricity generated (or acquired) of 773 GWh
(September 2018: 785 GWh)
•The unit generation cost, which includes acquired
generation was $49.07/MWh(September 2018:
$35.84/MWh)
•Own generation cost in the month of
$45.97/MWh(September 2018: $34.20/MWh)
September overview
Operating reportContact Energy Limited
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»Otahuhufutures settlement wholesale price for the 1
st
quarter of 2020 (ASX):
•As at 10 October 2019: $164/MWh
•As at 30 September 2019: $158/MWh
•As at 30 August 2019: $153/MWh
»As at 10 October2019, South Island controlled
storage was 80% of mean (30 September 2019: 82%)
and North Island controlled storage was 99% of mean
(30 September 2019: 91%)
•As at 10 October2019, total Clutha scheme
storage (including uncontrolled storage) was 24%
of mean
•Inflows into Contact’s Clutha catchment for
September 2019 were 52% of mean (August
2019: 74%, July 2019: 145%, June 2019: 104%)
The first quarter financial performance has been impacted by the
dry conditions in Contact’s hydrocatchment area as well as
reducednatural gas availability.Earnings are currently tracking
below the level expected for a mean hydrology year. As
previously communicated, Contact’s dividend policy looks
through variations in mean hydrology

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CY19CY20CY21CY22
$/MWh
29/06/201830/08/201930/09/2019
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29/06/201830/08/201930/09/2019
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GWh
South Island ActualNorth Island Actual
South Island MeanNational Mean
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

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$/MWh
FY19 BENFY20 BENFY19 OTAFY20 OTA
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<$35$36-$60$61-$85$86-$110$111-$135$136-$160>$160
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Sep-19Sep-18Aug-19
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<$35$36-$60$61-$85$86-$110$111-$135$136-$160>$160
% of trading periods
Sep-19Sep-18Aug-19
Wholesale market
Wholesale electricity pricing
Operating reportContact Energy Limited
Distribution of wholesale market price by trading periods
Benmore node
Otahuhu node
4

1%
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GWh
North IslandSouth IslandNZAS
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 September 2018
Total national demand (FY18, 19 and 20)
»New Zealand electricity demand was up 1.3% on September 2018 (up
2.6% on September 2017):
•Cumulative 12 months demand for October 2018 to September
2019 of 41,452 GWh is up by 0.3% on the prior comparative
period.
Month Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Year
Regional demand is excluding NZAS

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$/MWh
GWh
GeothermalHydroThermalAcquired generationContracted electricity salesUnit generation cost (RHS)
Contact’s Wholesale business performance
Generation mix, gross sales position and unit generation cost (FY19 and 20)
Operating reportContact Energy Limited
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Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
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$/MWh
GWh
Mass market electricity salesRetail gas salesNetback
Retail sales volumes and netback (FY19 and 20)
Contact’s Customer business performance
7
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Year
Operating reportContact Energy Limited

Contact’s operational performance
8
Operating reportContact Energy Limited
Measure
The month ended The month ended The month ended Three months endedThree months ended
September 19September 18August 19September 19September 18
CustomerMass market electricity salesGWh323 320 365 1,060 1,084
Retail gas salesGWh76 89 113 294 301
Mass market electricity and gas salesGWh398 409 478 1,354 1,385
Average electricity sales price$/MWh241.10 241.66 238.22 238.75 238.35
Electricity direct pass thru costs$/MWh(116.41)(115.67)(113.04)(113.84)(113.23)
Cost to serve$/MWh(18.07)(15.15)(14.10)(15.44)(14.28)
Customer netback$/MWh91.74 92.36 90.98 91.48 92.24
Energy cost$/MWh(77.64)(69.09)(85.07)(85.37)(78.33)
Actual electricity line losses%7%8%8%7%7%
Retail gas salesPJ0.3 0.3 0.4 1.1 1.1
Electricity ICPs#411,000 406,500 411,000
Gas ICPs#66,000 65,000 66,000
WholesaleElectricity sales to Customer businessGWh348 346 396 1,139 1,163
Electricity sales to Commercial and IndustrialGWh199 267 207 603 790
Electricity CFD salesGWh165 108 185 548 335
Contracted electricity salesGWh712 721 787 2,290 2,288
Steam salesGWh66 68 63 151 161
Total electricity and steam net revenue$/MWh74.60 72.37 85.94 84.27 81.79
C&I netback (at the ICP)$/MWh79.25 80.03 94.97 89.29 88.81
C&I line losses%5%7%4%3%5%
Thermal generationGWh265 216 215 669 615
Geothermal generationGWh283 295 285 854 858
Hydro generationGWh175 243 278 821 882
Spot electricity salesGWh723 754 778 2,344 2,355
Electricity sales -DirectGWh9 10 9 21 22
Acquired generationGWh40 22 68 140 47
Electricity generated (or acquired)GWh773 785 855 2,505 2,424
Unit generation cost (including acquired generation)$/MWh(49.07)(35.84)(44.48)(42.58)(33.49)
Spot electricity purchasesGWh(537)(604)(594)(1,721)(1,931)
CFD sale settlementsGWh(165)(108)(185)(548)(335)
Spot exposed purchases / CFD settlementGWh(703)(711)(779)(2,269)(2,266)
Spot revenue and settlement on acquired generation
(GWAP)
$/MWh120.30 86.59 125.79 116.34 82.81
Spot purchases and settlement on CFDs sold (LWAP)$/MWh(126.48)(89.79)(130.92)(122.21)(85.58)
LWAP/GWAP%105%104%104%105%103%
Gas used in internal generationPJ2.3 1.9 2.0 5.8 5.5
Gas storage net movement (extraction) / injectionPJ(0.5)(1.0)0.0 (0.1)(2.1)

Keep in touch
Operating reportContact Energy Limited
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contact.co.nz
@ContactEnergy
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investor.centre@contactenergy.co.nz
contact.co.nz/aboutus/investor-centre
+64 4 462 1323
+64 21 072 8578
Investors
Matthew Forbes
General manager -Corporate Finance
To find out more about Contact Energy