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: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news