Contact Energy has posted a 4% decline in annual revenue, pulling back from $2.17 billion a year ago to $2.08 billion.
It reported lower lpg sales and decline in earnings from South Island hydro operations, which are at 80-year low inflows at present.
Reported after-tax profit rose from a $66 million loss a year ago to a $150 million profit; given last year was compromised mainly by $204 million of impairments, including closure of the Otahuhu power station, quitting of a geothermal development and write-down of inventory gas.
For Contact's year ended June, earnings before tax, depreciation, amortisation and financial instruments (ebitdaf) was down 6%, from $523 million last year to $494 million.
Contact shares rose 2% to $5.49 after the announcement.
Contact chief executive Dennis Barnes said at the start of the year there was a "sudden and significant swing'' to above-average hydro generation storage.
However, that then gave way to 80-year-low inflows into Contact's key South Island lakes, culminating in a "dry winter'' which limited Contact's ability to run its hydro generation.
"During the final quarter of the financial year our gas-powered stations ran hard during the peak of winter demand,'' Mr Barnes said.
He noted the changing conditions illustrated the importance of Contact having a diverse generation portfolio to ensure generation flexibility to continue to supply its customers, regardless of the impact of the weather.
Forsyth Barr broker Damian Foster said relative to last year, ebitdaf was down by $29 million to $494 million.
Difficult hydro conditions during the fourth quarter were the main issue, but he also noted a lower contribution from lpg sales, down from $117 million a year ago to $122 million.
Craigs Investment Partners broker Peter McIntyre said the full year result was a ``disappointment'', albeit it had been well signalled.
"The outlook for full-year 2018 is very positive with cost reduction inked in, retail price increases expected and a better distribution of cash [dividends],'' Mr McIntyre said.
Mr Barnes said more customers were choosing to stay with Contact. Overall customer numbers for the year across electricity, natural gas and lpg rose from 562,500 to 567,000, "in an extremely competitive market'', again recording customer switching levels 19.6%, below that of the overall market; 21.4%.
While the full-year dividend is 26c per share, as expected. Mr Foster highlighted Contact would now pay between 80% and 90% of its operating free cash flow towards dividends, which meant a "target'' of a 32c dividend for next year.
Operating free cash flow of $300 million for the 2016-17 financial year was "strong", reflecting reduced capital expenditure needs and despite a $38 million boost to ebitdaf from a tax credit in the previous financial year, relating to the closure of Otahuhu-B, BusinessDesk reported.
