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

 

Media: Fairfax Moves To Create Modern Newsroom

Fairfax Media New Zealand continues its newsroom transformation this week, with a proposal to further organise its editorial operations into focused, local teams and specialist national topic areas. More>>

ALSO:

Dairy: Fonterra Forecast For 2015/16 Season

Fonterra Co-operative Group Limited has today reduced its forecast Farmgate Milk Price for the 2014/15 season to $4.40 per kgMS. Along with its previously announced forecast dividend range of 20-30 cents per share, the change amounts to a forecast ... More>>

ALSO:

BusinessDesk: SkyCity Lifts Minimum Convention Centre Investment To $430M

SkyCity Entertainment Group, the casino operator, has lifted the minimum it will invest in the Auckland International Convention Centre to $430 million and said total costs including land may be $450 million to $470 million. More>>

Statistics: Drop In Dairy Prices Leads Fall In Exports

Total goods exports fell $240 million (5.5 percent) to $4.2 billion in April 2015 compared with April 2014, Statistics New Zealand said today. More>>

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>


BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>

Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>

BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news