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

 


Genesis beats prospectus forecast with 53% drop in FY profit

Genesis Energy beats prospectus forecast with 53% drop in full-year profit

By Jonathan Underhill

Aug. 27 (BusinessDesk) - Genesis Energy, New Zealand’s largest energy retailer, posted a 53 percent drop in full-year profit, beating its prospectus forecast and affirmed it was on track to meet its targets for 2015 even in the face of heightened retail competition for electricity and gas.

Profit was $49.2 million in the 12 months ended June 30, down from $104.5 million a year earlier, the Auckland-based company said in a statement. Sales slipped 3 percent to about $2 billion. The results beat its prospective financial information (PFI) forecasts of a profit of $41.8 million while sales were 1.7 percent lower than the projected $2.04 billion.

The government completed its asset sales programme, raising $733 million from the sale of 49 percent of Genesis at $1.55 a share. The shares soared to as high as $1.925 after listing in April and rose 0.6 percent to $1.77 on the NZX today, meaning investors in the initial public offering are sitting on a gain of about 14 percent.

Earnings before interest, tax, depreciation, amortisation and fair value changes fell 9 percent to $307.8 million, while still beating its PFI forecast by 1 percent. The decline in earnings reflected lower wholesale electricity prices, reduced electricity generation and lower retail electricity and gas sales volumes, the company said.

Earnings were also hurt by a nine-week outage of the Tekapo A and B power stations in the second half of the year for second stage remediation work on the Tekapo Canal, one-time costs of the IPO and the cost of terminating an offshore coal supply contract.

Genesis said the retail electricity and gas markets were a "challenging environment" in the latest year. It has 26.1 percent share of the retail electricity market and 43.7 percent of the gas market. Total electricity customers fell 4 percent to 523,278 in 2014, which the company attributed to increased competition from smaller retailers taking advantage of lower wholesale electricity prices and "bundled offerings from established competitors."

"Looking ahead, while the markets that Genesis Energy operates in currently remain challenging, it expects to deliver 2015 results in line with the PFI forecasts for Ebitdaf of $363.4 million," it said.

The company will pay a final dividend of 6.6 cents a share, beating its PFI target of 6.4 cents and bringing total payments for the year to 13 cents. It paid a final dividend of 5.7 cents a year earlier.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

OceanaGold: Man Killed In Waihi Mine Accident

A 29-year-old man had died following a work place accident at OceanaGold mine, Waihi last night. The man was killed after the front end loader he was in rolled down a slope. The accident happened at approximately 6.30pm on Thursday night. More>>

ALSO:

Constructing Consent: Annual Housing Consents Highest In Over A Decade

More than 29,000 new homes gained building consent in the year to June 2016, up 16 percent from the previous June year, Statistics New Zealand said today. More>>

ALSO:

War Against Weevil For Future Peas: “No Peas, No Weevil” Ban Now In Place In Wairarapa

The Ministry for Primary Industries (MPI) has today placed a ban on growing peas within a specified area and placed controls on moving pea material (seed and untreated pea straw) within, in and out of this area for the next 2 years. More>>

ALSO:

Wood Producers: Crisis In New Zealand Log Supply

New Zealand wood processing leaders held a hui with senior government officials and political leaders in Whangarei yesterday to assess the acute log supply shortage to local mills in Northland. More>>

Consents And Taxes: Trustpower 'Very Disappointed' With Judgement

Trustpower is "very disappointed" with a Supreme Court ruling dismissing its bid to claim tax deductions on $17.7 million of project costs in a case closely watched by large-scale infrastructure developers. More>>

ALSO:

Fruitful Endeavours: Kiwifruit Exports Reach Record Levels

In June 2016, kiwifruit exports rose $105 million (47 percent) from June 2015 to reach $331 million, Statistics New Zealand said today. Overall, goods exports rose $109 million (2.6 percent) in June 2016 (to $4.3 billion). More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news