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

 

Scoop Business: Alex Swney Pleads Guilty To $2.5M Fraud Charge

Alex Swney, former chief executive of the Auckland city centre business association Heart of the City, has pleaded guilty to dishonestly using documents to obtain $2.5 million. More>>

ALSO:

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Scoop Business: NZ Broadcasters Launch Battle Against Global Mode ISPs

New Zealand broadcasters have confirmed they’ve launched legal proceedings against internet service providers who give customers’ access to “global mode”, which allows customers access to offshore online content, claiming it breaches the local content providers’ copyright. More>>

ALSO:

Sanford: Closure Of Christchurch Mussel Processing Plant Confirmed

The decision comes after a period of consultation with the 232 staff employed at the Riccarton site, who were told on 9 April that Sanford was considering the future of mussel processing in Christchurch. Recent weather patterns had impacted on natural spat (offspring) supply... More>>

ALSO:

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Scoop Business: Reserve Bank’s Spencer Calls On Govt To Rethink Housing Tax

The Reserve Bank has urged the government to take another look at a capital gains tax on investment in housing, allow increased high-density development and cut red tape for planning consents to address an over-heated Auckland property market. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news