Contact goes cool on gas, seeks higher returns on capital

Tue, 19 Feb 2013

By Pattrick Smellie Feb. 19 (BusinessDesk) - Contact Energy needs to raise its return on capital closer to international norms, but sees little capacity to do so by raising electricity prices in the next two or three years, says chief executive Dennis Barnes. In a briefing following the announcement of an $88 million tax-paid profit for the six months to Dec. 31, up 29 percent on the same period last year, Barnes said the company was earning a five to six percent return on capital, but needed to achieve eight or nine percent to reach acceptab...

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