Contact Energy - CEN Chart

[duncan macgregor]

Bit catty for a tiger perhaps we should call you ***** instead. Give me heaps but keep it straight not one eyed rubbish to try and prove a point. CEN will trend up its only time as will TPW. I can always bore Bongo on his new web site it might be fun giving him a stir up for a change. macdunk
Had to edit my bad spelling

[rmbbrave]

"CEN will trend up its only time as will TPW"

Some of the sentences could have done with a bit of editing too.

[rmbbrave]

Origin gain boosted by Contact

Thursday August 31, 2006
By Angela MacDonald-Smith


Origin Energy's full-year profit rose 10 per cent, buoyed by a full-year contribution from New Zealand's Contact Energy.

Australia's second-biggest energy retailer said net income rose to A$331.9 million ($391.8 million) in the year ended June 30, from A$301 million a year earlier. Sales jumped 21 per cent to A$5.9 billion.

Origin bought 51.4 per cent of Contact in October 2004 for $1.65 billion to tap the nation's 3 per cent annual growth in power consumption.

Managing director Grant King said earnings per share might be little changed this year, though average growth of 10 to 15 per cent a year remained "feasible" longer-term.

"The result was bang in line but the guidance was disappointing," said Jason Mabee, a utilities analyst at ABN Amro Australia in Sydney.

Earnings per share fell to 41.9 cents from 42.1 cents after Origin sold shares to fund the Contact acquisition.

Investments in expansions in Australia with interest charges on recently completed projects is expected to increase interest expenses in the year ending June 30, 2007.

"It is, therefore, possible that there will be little growth in earnings per share in the coming year," King said.

The company's energy retailing business benefited from a cold early start to winter in southeastern Australia, which lifted second-half natural gas sales.

Earnings before interest and tax from retailing rose 6 per cent to A$273 million.

Origin's earnings before interest and tax from Contact jumped 50 per cent to A$519 million, while earnings from generation rose 14 per cent.

Earnings from oil and gas exploration and production fell, as did earnings from the networks business.

Origin's oil and gas production is set to jump in the year ending June 30, 2007, following the startup of the delayed BassGas and Otway natural gas projects off the southeastern coast.

Production of coal seam gas will also increase over the next two years and the company is pursuing opportunities to expand hydropower and geothermal generation and start wind energy generation, Mr King said.

Origin may also bid for energy retailing assets to be sold by the Queensland state government.

Origin declared a final dividend of A9c up from A8c a year earlier.

- BLOOMBERG

[rmbbrave]

Come on guys use your brains and not your timelines.

Origin wants all of CEN.

Why?

See the above article.

They have tried for all of it at $8.00 but that wasn't enough.

Do you honestly think they won't try again?

[duncan macgregor]

quote:Originally posted by rmbbrave

Come on guys use your brains and not your timelines.

They dont understand that either RMBBRAVE, so there goes your brain theory. Macdunk praising the herds knowledge of reality.
ONLY KIDDIN

[Lawso]

quote:Origin wants all of CEN

I thought so too, rmb, especially with their consistent doom & gloom for at least the past year about CEN's prospects, e.g. future gas costs. It seemed so obvious that they were trying to talk the price down so they wouldn't have to pay too much. But on Wednesday Origin said they had no plans to either increase or quit their 51.4% stake. There's no way they could go back on such a firm statement in the foreseeable future.

So what's next? There is speculation that with their ultra-strong balance sheet and no major acquisitions on the agenda, Origin could initiate a buy-back move by CEN - anything from 50c to $2 a share.

With due respect to Phaedrus, this is for me a stronger BUY signal than anything likely to be shown on his charts.

[rmbbrave]

Analysts talk up Contact bonanza
01 September 2006
By MARTA STEEMAN

A capital repayment to Contact Energy's 95,000 shareholders of up to $1.15 billion is being talked of.


The electricity producer posted a $281 million profit 10 days ago.

Analysts say shareholders could get back between $290 million and $1.15 billion, which would be worth between 50 cents and $2 a share. A buyback of shares is considered a tax-efficient means of returning the capital. The return would probably happen before the end of June, Contact's balance date.

Its size will depend on the outcome of a strategic review by chief executive David Baldwin. This follows the abandonment of a merger with Origin Energy.

The review is expected to be completed by the end of the year, analysts say.

Mr Baldwin said last week the company was reviewing its dividend policy and capital structure. He has not ruled out a capital return.

At the February 2005 annual meeting, chairman Grant King, who is also chief executive of Origin, ruled out a capital return.

AdvertisementAdvertisementThe review will set out expected spending on investments such as power plants and fuel supply.

But analysts say any big capital expenditure projects in the next three or four years seems unlikely because the projects being investigated take time to develop.

If Contact returned capital this year it had the option of going back to shareholders in several years when a power plant or another development required funding.

They say Contact has too little debt and too much equity for a company of its type, and therefore its balance sheet was inefficient and its capital structure not the best. Debt is considered cheaper than equity.

First New Zealand Capital analyst Jason Lindsay estimates Contact could return up to $1.15 billion. Contact has 576.7 million shares on issue, resulting in a capital return of $1.99 a share.

Goldman Sachs JBWere analyst Peter Sigley suggested a capital return of about 50c a share, which would cost $288 million.

Mr Sigley said Contact generated a huge amount of cash from its renewable hydro and geothermal power generation and was likely to remain cash rich.

It had significant opportunities for "chunky" investment in power plants. But Mr Sigley estimated any investment would be few years off.

"I think they could return a reasonable level of capital and still keep some options open," he said.

Tyndall Investment equities manager Rickey Ward said institutional shareholders in Contact and analysts he had talked to expected some sort of capital return. Origin's lacklustre annual result this week increased the likelihood because Origin needed the cash.

He hoped for some announcement or indication at the annual meeting on October 19, though others thought it might be closer to Christmas or at the half-year result in February.

BT Funds management analyst Paul Richardson said at the annual meeting institutions would be questioning the company on capital structure, including a return of capital and the dividend policy.

[craic]

Just started a get-rich-quick share portfolio apart from my main lot. 1500 CEN and 1500 TEL to ope the game.What to do with the remaining $3,000?

[winner69]

RBD my man .... before the private equity vultures swoop

[duncan macgregor]

quote:Originally posted by winner69

RBD my man .... before the private equity vultures swoop

Three grand he would be wasting his time, even if it comes off. Penny dreadfulls for you my man, do a bit of homework if you want a winner. Nothing over 20cents if its a get rich plan. High risk high return, with as many shares or options as you can get. The other option is trade your way up, with at least one buy and one sell every week. That can be a lot of fun, give that ago see what happens. macdunk