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

 


Genesis Energy grows electricity and retail gas sales volume

30 January 2014

Additional commercial electricity and residential gas customers joining Genesis Energy resulted in improved electricity and gas sales for New Zealand’s leading energy retailer in the three months to the end of December 2013 (Q2).

Chief Executive Albert Brantley said the Company’s Q2 operational performance was influenced by an increasingly competitive retail electricity market and lower wholesale electricity prices. The Quarter also experienced year on year increases in electricity generation from the Company’s gas-fired Huntly Unit 5 as well as increased production volumes from the Kupe oil and gas field.

Electricity sales volumes were up 3% to 1,296 GWh in Q2 due to new commercial and industrial customers increasing Time of Use sales by 105% to 196 GWh. This offset a 5% decline in mass market sales volumes versus the same period last year. Total retail gas sales were also up in Q2 (up 30% to 1.2 PJ) reflecting the sharp increase in gas customers in the last 18 months on the back of the Company’s dual fuel promotion.

Q2 marked a step up in competition for retail customers with customer switching rates across the market increasing significantly and market share gains being made by retailers outside of the top four companies. At 31 December 2013 the Company had 534,597 electricity customers (26.8% market share), up 1% in the last twelve months, but down 1% in the last three months and 2% lower than the 543,774 customers at the end of June 2013. Gas customers of 115,603 (43.7% market share) and 10,739 LPG customers are up 4% and 28% on Q2 2013 respectively.

Wholesale electricity prices in Q2 were negatively impacted by warmer than average weather conditions (lowering consumer demand) and above average storage levels in hydro catchments.

This influenced Genesis Energy’s total generation in Q2 of 1,475 GWh which was down 5% compared to 1,560 GWh in Q2 2013. Thermal generation of 700 GWh was down 17% on last year due to an 86% decline in coal fired generation which in turn reflected a preference for generating from gas. This along with a weaker comparable period in Q2 2013 (due to a planned outage for its first six year maintenance) led to Huntly Unit 5’s generation of 484 GWh being up 26% on the prior year.

Production at the Kupe oil and gas field was up significantly year on year due to a planned outage in Q2 2013. The Company’s share of gas sales of 1.5PJ was up 34%, oil production of 114kbbl up 19% and LPG sales of 6.2kT 33% higher than last year.

Despite competitive pressures in the retail electricity and gas market, Genesis Energy continued to leverage its diverse and flexible generation assets across New Zealand in an effort to manage the volatility in the market.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: NZ Dollar Catches Breath After "Goldilocks" Slump

The New Zealand dollar edged up following its dramatic slump yesterday after the Reserve Bank confirmed speculation it intervened in the currency market last month and PM John Key suggested a “Goldilocks” level far lower than at present. More>>

ALSO:

Biosecurity: Kiwifruit Claim To Hold Officials Accountable For Psa

Kiwifruit growers have joined forces to hold Biosecurity NZ accountable in the courts for its negligence in allowing 2010’s Psa outbreak that devastated New Zealand’s kiwifruit industry and exports. Foundation claimants representing well ... More>>

ALSO:

Poison: Anglers Advised Not To Eat Trout In 1080 Areas

With the fishing season opening in just a few days (1 October 2014), anglers are being warned by the Department of Conservation(DOC) not to eat trout from pristine backcountry waters and their downstream catchments, where the department is conducting 1080 poisoning operations. More>>.

ALSO:

Quotas: MPI Swoop On Suspected Fraudulent Fishing Activity

Ministry for Primary Industries (MPI) compliance officers swooped on a Hawkes Bay fishing enterprise today to secure evidence in an investigation into suspected fraudulent activity... “The investigation involves activity throughout the commercial supply chain – catching, landing, processing and exporting.” More>>

ALSO:

Scoop Business: Fonterra Slashes 2015 Milk Payout, Earnings Tumble 76%

Fonterra Cooperative Group cut its forecast 2015 milk price payout by about 12 percent, citing weaker global dairy prices and said there is a risk of further declines given strong global milk production. More>>

ALSO:

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:

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