Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Genesis Energy produces tidy first-half result, NPAT up 85%

Genesis Energy produces tidy first-half result, NPAT up 85%

Feb. 26 (BusinessDesk) - Genesis Energy has turned in a tidy-looking result for the six months to Dec 31, with net profit after tax up 85 percent to $71 million as the company benefits from lower interest and depreciation costs, and low wholesale electricity purchase prices.

Lower priced electricity and weak consumer demand meant total revenue for the period fell 7 percent to $1.03 billion, but total operating expenses fell more, down 9 percent to $835 million.

That produced a 3 percent improvement in the raw operating measure of earnings before interest, tax, depreciation, amortisation and changes in the value of financial instruments (ebitdaf).

Genesis will return to paying dividends this year after two years spent absorbing the cost of buying the Tekapo A and B hydro power stations as part of industry reforms. It will pay an interim dividend of $57 million.

Genesis is the last of the three state-owned power companies slated for partial privatisation and could yet beat its larger competitor, Meridian Energy, in offering up to 49 percent of its stock to the public.

A crucial Supreme Court decision on the government's asset sales programme is due in the next three days and will determine whether Mighty River Power can go to market.

The combined impact of the various factors flowing in Genesis's favour in the latest half also saw net operating cash flow improve by 50 percent to $218 million.

The company has no plans to build new generation plant in the near future and, like other electricity companies, sees wholesale prices remaining depressed for some time to come.

However, it's committing between $145 million and $155 million to upgrading the canal system at Tekapo over the next two years, which will involve two 14 week outages.

The company expects net profit after tax for the financial year ending June 30 2013 to exceed NPAT for the first half, although planned outages at Tekapo will affect generation capacity.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Internet: NZ Govt Lifts Target Speeds For Rural Broadband

The government has lifted its expectations on faster broadband speeds for rural New Zealand as it targets increased spending on research and development in the country's information and communications technology sector, which it sees as a key driver for export growth. More>>


Banks: Westpac Keeps Core Government Transactions Contract

The local arm of Westpac Banking Corp has kept its contract with the New Zealand government to provide core transactions, but will have to share peripheral services with its rivals. More>>


Science Investment Plan: Universities Welcome Statement

Universities New Zealand has welcomed the National Statement of Science Investment released by the Government today... this is a critical document as it sets out the Government’s ten-year strategic direction that will guide future investment in New Zealand’s science system. More>>


Scouring: Cavalier Merger Would Extract 'Monopoly Rents' - Godfrey Hirst

A merger of Cavalier Wool Holdings and New Zealand Wool Services International's two wool scouring operations would create a monopoly, says carpet maker Godfrey Hirst. The Commerce Commission on Friday released its second draft determination on the merger, maintaining its view that the public benefits would outweigh the loss of competition. More>>


Scoop Review Of Books: She Means Business

As Foreman says in her conclusion, this is a business book. It opens with a brief biographical section followed by a collection of interesting tips for entrepreneurs... More>>


Hourly Wage Gap Grows: Gender Pay Gap Still Fixed At Fourteen Percent

“The totally unchanged pay gap is a slap in the face for women, families and the economy,” says Coalition spokesperson, Angela McLeod. Even worse, Māori and Pacific women face an outrageous pay gap of 28% and 33% when compared with the pay packets of Pākehā men. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news