Sharechat Logo

Genesis 1H earnings slip as reduced generation offsets retail gains

Wednesday 27th February 2019

Text too small?

Genesis Energy reported a 2 percent decline in first-half operating earnings as reduced earnings from its generation and Kupe interests offset gains in pricing and volumes in its retail business.

The country’s biggest power and gas retailer reported earnings before interest, tax, depreciation, amortisation and changes in financial instruments of $196 million for the six months through December, from $198 million a year earlier.

Net profit jumped to $49 million, from $28 million, on fair value adjustments and reduced depreciation. Underlying profit rose 4 percent to $43 million.

Chief executive Marc England said the firm’s wholesale business performed well in “very volatile conditions.” The dual-fuel Rankine units at Huntly – which ran on coal for much of the period – had maintained security of supply during times of low inflows and restricted gas supplies.

In the retail business, gross customer churn was down 4.8 percent and the number of customers taking multiple fuels was up 6.4 percent.

“Both outcomes show that investing in great service, innovative products and loyalty initiatives is right for Genesis,” England said.

The company today lifted its full-year ebitdaf forecast to $360-375 million, from the $350-370 million it was picking late last year.

It will pay an 8.45 cent interim dividend on April 18, up from 8.3 cents a year ago.

Genesis operates three hydro schemes, a wind farm and the country’s biggest coal- and gas-fired power stations at Huntly. It previously reported that those plants received an average $146.32/MWh for their output in the period – 52 percent more than the year before – but volumes fell 12 percent due to constrained gas supplies and plant outages.

Oil and gas production from the Kupe field, 46 percent owned by Genesis, was also reduced by planned maintenance shuts.

Electricity sales were 4.4 percent higher at 3,139 GWh, largely due to greater volume being sold to commercial and industrial customers. Average prices were also higher. Gas and LPG volumes also improved, again boosted by sales to business and heavy industry.

Genesis shares last traded at $2.77 and have gained almost 18 percent the past year.


  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:

NZD headed for 0.6% weekly gain against greenback
PREVIEW: RBNZ tipped to keep cash rate at 1.75%, reiterate next move could be up or down
Sky TV hires Deloitte partner as fill-in CFO
Vector fined $3.6 mln in industry first
SIS Group to partner with Platform 4 Group
Dry weather cutting dairy production, boosting power costs
22nd March 2019 Morning Report
NZ dollar dips back below 69 US cents, focus shifting to RBNZ
Top Energy's geothermal expansion to cut lines charges
MARKET CLOSE: NZ shares rise on Fed restraint, local GDP growth; Auckland Airport slides

IRG See IRG research reports