27 Aug 2008

Modest profit expected for Contact Energy

2:01 pm on 27 August 2008

Contact Energy is expected to announce a modest profit when it issues its annual result on Tuesday.

Analysts say setbacks faced by the listed energy company include the impact of drought on its hydro generation and a major outage at its Otahuhu B power station.

Forsyth Barr analyst Andrew Harvey-Green expects Contact's profit to rise 3% in the year to the end of June compared with the previous year.

Mr Harvey-Green says the company plans to increase its gas generation over the next few years and will be well positioned to weather future droughts.