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Genesis Energy Limited (NZX: GNE) FY21 Interim Results Announcement

Thursday 25th February 2021

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Genesis delivers strong first half EBITDAF of $217 million

* EBITDAF $217 million, up $50 million on HY20 of $167 million

* Net Profit $53 million, up $44 million on HY20 of $9 million

* Underlying Earnings $60 million, up $44 million on HY20 of $16 million

* Earnings Per Share 5.90 cents, up 4.19 cps from HY20 of 0.9 cps

* Underlying Earnings Per Share 5.83 cents, up 4.30 cps from HY20 of 1.53 cps

* Interim Dividend Per Share 8.60 cents, up 0.9% from HY20 of 8.525 cents

* Free Cash Flow $159 million, up 69% on HY20 of $94 million

Strong retail margins and lowered fuel costs help to offset reduced hydro inflows and challenging gas market conditions

Genesis Energy today announced that it delivered EBITDAF of $217 million for the first half of FY21, an increase of 30% on the same period last year. This is the Company’s strongest first half performance since listing in 2014. Net Profit increased to $53 million driven by stronger performance across the Wholesale, Kupe and Retail segments.

The Retail segment was boosted by stronger retail margins and the Wholesale segment by lower thermal fuel costs. The Kupe joint venture continues to produce a reliable return due to increased output supported by fewer planned outages in the first half.

Net debt is down 5.5% to $1,182 million and free cash flow is up 69% to $159 million. An interim dividend of 8.60cps has been declared. The Dividend Reinvestment Plan has been suspended until further notice.

“Our retail business has delivered improved efficiencies without compromising on our vision to be ‘customer’s first choice for energy management’. Our Energy IQ app now has 229,000 subscribers and, in 1H FY21, we launched advanced gas metering and new Energy Plus plans, which have already given 183,000 customers access to more customised payment options. The last six months has also seen a reduction in disconnections and bad debt, largely due to measures implemented by the business as part of its response to the customer impact of COVID-19,” said Marc England, Chief Executive, Genesis Energy.

Interim dividend and dividend reinvestment plan

The Board has declared an interim dividend of 8.60 cents per share, an increase of 0.9% which has a record date of 18 March 2021 and will be paid on 1 April 2021. As noted above, the Dividend Reinvestment Plan has been suspended.

FY21 guidance

Genesis expects the hydrological and gas market conditions experienced in the first half to continue through into the second half of FY21. Huntly Unit 5 will also go offline for planned maintenance in April 2021 to ensure its availability over winter.

EBITDAF guidance for the full year ended 30 June 2021 has been revised upward from previous guidance of $395 million - $415 million to $415 million - $425 million, subject to market conditions. Capital expenditure guidance for FY21 is unchanged at up to $95 million.

Please see the links below for details:

Genesis Energy HY21 Announcement

Genesis Energy HY21 Results Presentation

Genesis Energy HY21 Interim Report

Genesis Energy NZX Financial Results Announcement HY21

Genesis Energy NZX Distribution Notice HY21 Interim Dividend

Source: Genesis Energy Limited



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