Tough trading conditions and below average wholesale electricity prices are expected to feature in Contact Energy's financial results for the six months to December, due out tomorrow.
Stockbrokers expect Contact's reported profit to be down 22%-28% on the previous corresponding period (pcp).
Forsyth Barr broker Peter Young said the result was expected to be "poor", an outcome Contact had already signalled to the market.
Mr Young forecast earnings before interest and tax (ebit) would be down 22%, from $149.8 million pcp to $116.7 million, and reported profit down 37%, from $86.5 million pcp to $54.5 millionCraigs Investment Partners broker Chris Timms said Contact's operational data for December reflected "a struggling retail business", with its profit margin falling to -8%.
He forecast reported profit would be down 28% for the six months to December, from $86.5 million pcp to $62 million, largely because of depreciation charges beginning on new plants recently completed by Contact.
Mr Timms forecast Contact would deliver earnings before interest, tax and depreciation of $219 million, above its own downgraded guidance of $203 million, as a result of commercial customers replacing departing retail customers.
