Contact Energy shareholders showed their disappointment with the company's unchanged dividend policy by marking the shares down nearly 6% when the market opened yesterday.
The shares fell 42c to $6.53 after the company announced a lower-than-expected financial result for the six months ended December and kept its interim dividend payment unchanged at 11c per share.
Contact closed last night at $6.30, down 8.9%.
The company, which operates hydro assets on the Clutha River, reported operating earnings of $257 million for the period, down 3% on the $264 million reported in the previous corresponding period.
Although the company paid less than half of the tax of the pcp at $21 million compared to $43 million, the reported profit still fell 54% to $51 million compared to $112 million.
Craigs Investment Partners broker Chris Timms described the result as a ''wobbly start'' to the financial year.
Contact had changed some of its systems and its Te Mihi plant was offline for a long period last year.
''The result is at the bottom end of what we expected, maybe lower. There was no earnings forecast which makes it difficult, but it is not unexpected these days,'' Mr Timms said.
''The expectation of a dividend increase has been put off, at this stage.''
The key focus for investors was the dividend and investors would not have too many issues with the result, he said.
Forsyth Barr broker Peter Young said he expected the operating profit was going to be down on the pcp but there was nothing to indicate the $17 million of ''one-off'' transitional costs.
Contact had made some more positive comments about the second-half of the financial year, saying it expected to get good performance from the geothermal assets.
However, it also commented, somewhat curiously, ''industry consolidation would be typical and beneficial to a fragmented market such as New Zealand''.
Those opportunities appeared to be limited, Mr Young said.
''We maintain our view Contact is unlikely to see a change in structure, although it is a curious comment for Contact and owner Origin to make.''
Given market growth opportunities in New Zealand were limited or unlikely, Contact was investigating how to use its skills offshore, he said.
Contact said in a statement to the NZX it expected a reduction in the costs to serve its customers would help improve profits above the interest and depreciation costs from the new system.
Contact would be a strongly cash-generative business in the future, providing new opportunities to create value for shareholders.
''The New Zealand electricity market is mature, with no material growth in electricity demand expected, with risks around the future of the Tiwai aluminium smelter and continued erosion of retail margins,'' the company said.
