Sharechat Logo

FIRST CUT: Genesis beats earnings forecast on strong generation demand

Wednesday 29th August 2018

Text too small?

Genesis Energy reported an 8 percent increase in full-year operating earnings after dry, still weather boosted demand for coal- and gas-fired generation from its Huntly site.

Earnings before interest, tax, depreciation, amortisation and changes in financial instruments climbed to $360.5 million in the year ended June 30, from $332.5 million a year before.

Net profit fell to $19.8 million, down 83 percent from $118.7 million the year before. The change reflects higher depreciation, and a generation revaluation this year versus a gain last year on both the firm’s generation portfolio and its derivatives book.

The company had forecast ebitdaf of $350 million to $360 million. It has already reported an 11 percent increase in annual generation volumes and a 5 percent increase in gas production from the Kupe field.

Auckland-based Genesis is the country’s biggest electricity retailer and has been working harder to develop new products and make more value from its gas interests.

Last year it increased its stake in the Kupe gas field, the country’s fourth-biggest producer, to 46 percent. It also bought rival Nova Energy’s LPG business to gain a national distribution network and scale efficiencies from a commercial customer base.

It will pay an 8.6 cent final dividend on Oct. 19 to shareholders registered on Oct. 5. A year ago it paid 8.4 cents.


  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar falls with Aussie after Westpac's RBA rate cut call
Intuit juggernaut grows QuickBooks subscribers but momentum slows
Reaction to Budget rules relaxation shows balance 'about right', says Ardern
Augusta lifts net profit six fold as investors flock into new funds
Annual exports to China top $15 billion for first time
Gentrack posts $8.7M loss on CA Plus write-down
Westpac says RBNZ capital proposals would add $6,000 p.a. to an Auckland mortgage
Cavalier says market conditions still challenging
Ryman hikes dividend as annual earnings grow on wider development margin
24th May 2019 Morning Report

IRG See IRG research reports