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.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Constructions Builds: Consents Top $2 Billion For The First Time

Building consents reached a record $2 billion in March 2017, boosted by new homes and several big non-residential projects, Stats NZ said today. This was up 37 percent compared with March 2016. More>>

Other Stats:

Health: Work Underway To Address Antimicrobial Resistance

As part of a global response the Ministries of Health and Primary Industries have today jointly published ‘Antimicrobial Resistance: New Zealand’s current situation and identified areas for action’ to respond to the changing pattern of antimicrobial resistance in New Zealand. More>>

ALSO:

Employment: Vodafone Announces Family Violence Policy To Support Team

From today, any of Vodafone’s 3,000 workers affected by family violence will be eligible for a range of practical support, including up to 10 additional days of paid leave per year. More>>

Burning Up Over Saturn: Cassini's Grand Finale

With propellant running low, NASA scientists are concerned that the probe might accidentally crash into one of Saturn’s nearby moons, which could contaminate it with Earthling bacteria stuck to the spacecraft. Instead, the spacecraft will be safely "disposed" in Saturn's atmosphere. More>>

ALSO:

Our Fresh Water: Monitoring Report Confirms Serious Challenges For Rivers

• nitrogen levels are getting worse at 55 percent and getting better at 28 percent of monitored river sites across New Zealand • phosphorus levels are getting better at 42 percent and getting worse at 25 percent of monitored river sites across New Zealand More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news