Contact Energy Limited · NZX:CEN
Contact Energy — UBS Conference 2014
11 slides from Contact Energy's conference presentation, Jun 19, 2014
Slide 1: UBS Conference
UBS Conference Dennis Barnes Chief Executive Officer 19 June 2014
Slide 2: Disclaimer
Disclaimer 2 This presentation may contain projections or forward looking statements regarding a variety of items. Such forward-looking statements are based upon current expectations and involve risks and uncertainties. Actual results may differ materially from those stated in any forward-looking st
Slide 3: Contact Energy - overview
Contact Energy - overview Contact Energy owns and operates Supplies of the New Zealand i pes power stations 22% electricity retail market throughout New Zealand (at 31 December 2013) ik 66 MW ( (gross) thermal generation panes New Zealand’s only underground g: Ahuroa, Taranaki 5 Bee ey eeeions in i
Slide 4: Business set up to deliver stable cashflows
Business set up to deliver stable cashflows 4 Focus on efficiency and lower capital expenditure will increase free cashflow Second largest gas and electricity Flexible portfolio allows management of retailer in New Zealand variable operating conditions Electricity sales 1 Contact generation mix 1 10
Slide 5: Current capital investment programme has come to an end
Current capital investment programme has come 5 to an end Te Mihi Power Station commissioned Retail transformation live • 166MW geothermal power station • SAP ‘go-live’ in the retail business April 2014 commissioned May 2014 » Completes the SAP transformation of » Maximises resource consent at the F
Slide 6: Methanol linked gas prices and lack of long-term gas certainty have supported a transition to geothermal and wind
Methanol linked gas prices and a lack of long-term 6 gas certainty have supported a transition from gas generation to geothermal and wind Sources of gas demand 1 New Zealand non-hydro energy supply 2 250 (based on GWh of generation) 100% Coal 90% 200 80% Other 70% demand Gas 150 60% PJ 50% 100 Metha
Slide 7: Gas production has remained stable, despite extensive exploration
Gas production has remained stable, despite 7 extensive exploration, with no major gas discoveries for many years 1 Gas production by field Years of remaining reserves (P50) 1 16 200 180 14 Other 160 12 Mangahewa 140 Kupe 10 Production (PJ) Years 120 Kapuni 8 100 6 Maui 80 4 60 2 40 Pohokura 0 20 20
Slide 8: Thermal generation remains critical to supporting wind and hydro volatility
Thermal generation remains critical to supporting 8 wind and hydro volatility Contact has retained options to maximise the value of future gas contracts, with decisions driven by the market value of capacity • Contact remains without any significant contracted gas for the 2015 calendar year • A numb
Slide 9: A stable regulatory environment is important given the long-term nature of our business
A stable regulatory environment is important 9 given the long-term nature of our business • Labour-Green proposed reforms » New Zealand election to be held 20 September 2014 » Opposition policies include a proposal to remove the wholesale market to reduce electricity prices » The current market stru
Slide 10: Summary
Summary 10 • Current capital and refinancing programme complete • Strong operational focus continues • Competitive advantage in investment in fuel and plant flexibility and enterprise wide systems • Tauhara – next most competitive generation development in New Zealand
Slide 11: Any questions?
Any questions?