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

 

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Scoop Business: NZ-Korea FTA Signed Amid Spying, Lost Sovereignty Claims

A long-awaited free trade agreement between New Zealand and South Korea has been signed in Seoul by Prime Minister John Key and the Korean president, Park Geun-hye. More>>

ALSO:

PM Visit: NZ And Viet Nam Agree Ambitious Trade Target

New Zealand and Viet Nam have agreed an ambitious target of doubling two-way goods and service trade to around $2.2 billion by 2020, Prime Minister John Key has announced. More>>

ALSO:

Scoop Business: NZ Economy Grows 0.8% In Fourth Quarter

The New Zealand economy expanded in the fourth quarter as tourists drove growth in retailing and accommodation, and property sales increased demand for real estate services. More>>

ALSO:

Scoop Business: RBNZ’s Wheeler Keeps OCR On Hold, No Rate Hikes Ahead

The Reserve Bank has removed the prospect of future interest rate hikes from its forecast horizon as a strong kiwi dollar and cheap oil hold down inflation, and the central bank ponders whether to lower its assessment of where “neutral” interest rates should be. The kiwi dollar gained. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news