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.


© Scoop Media

Business Headlines | Sci-Tech Headlines


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Health: New Zealand's First ‘No Sugary Drinks’ Logo Unveiled

New Zealand’s first “no sugary drinks logo” has been unveiled at an event in Wellington... It will empower communities around New Zealand to lift their health and wellbeing and send a clear message about the damage caused by too much sugar in our diets. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news