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Genesis Energy Limited (NZX: GNE) Delivers Earnings of $358 million

Thursday 26th August 2021

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Genesis Energy today announced EBITDAF of $358 million for the year ended 30 June 2021. Genesis achieved Net Profit of $33 million and underlying earnings of $75 million. Genesis declared an increased final dividend of 8.8 cps, resulting in total FY21 dividends of 17.4 cps. Results were impacted by Genesis’ decision to invest $27 million to utilise the Fixed Priced Option in order to meet the company’s carbon obligations as well as an unfavourable arbitration ruling resulting in $33 million of costs relating to prior years.

The result follows a challenging FY21 for the sector with persistently low hydro inflows and declining gas supply. The flexibility of Genesis’ assets provided support to the market during a period of prolonged energy shortages ahead of winter.

“The value of our generation portfolio was demonstrated by our ability to temporarily reinstate a generator at Huntly Power Station to compensate for the shortfall in renewable generation and ensure hydro levels could be conserved ahead of winter,” Mr England said.

“And, operating at the intersection of the electricity and gas markets meant we were able to negotiate key gas supply agreements that supported electricity generation through winter and allowed us to supply critical gas supply to industrial customers and other market participants.”

Dividends

The Genesis Board has confirmed a final dividend of 8.8 cents per share, bringing the full year dividend to 17.4 cents per share, an increase of 1.2%. The final dividend has a record date of 24 September 2021 and will be paid on 8 October 2021.

The Board also confirmed a new dividend policy of paying out between 70% and 90% of free cash flow. The change in policy introduces the flexibility to retain capital to invest in our Future-gen strategy. However, the change in policy does not represent a departure from our aim to grow dividends over time and we recognise the importance of dividends to our investors.

FY22 guidance

EBITDAF guidance for the full year ended 30 June 2022 is $420 million to $440 million, subject to market conditions. Capital expenditure guidance for FY22 is for capital spend up to $95 million.

Please see the links below for details

Genesis Energy - FY21 Full Year Market Statement

Genesis Energy - FY21 Results Presentation

Genesis Energy Annual Report 2021

Genesis Energy NZX FY21 Results Announcement Notice

Genesis Energy NZX FY21 Distribution Notice - Final Dividend

Source: Genesis Energy Limited



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