Genesis generator fault won't hit FY18 guidance

Genesis generator fault won't hit FY18 guidance despite cutting capacity 43%

By Sophie Boot

Dec. 21 (BusinessDesk) - One of Genesis Energy's three generators in Tekapo suffered a fault last month and won't return to full capacity until early March, though the company hasn't altered full-year guidance.

The fault occurred when the unit was being returned to service following a planned outage, Genesis executive general manager of generation and wholesale Tracey Hickman said in a statement. The fault means the company's Tekapo power scheme has lost 43 percent of its generating capacity.

"Whilst the recent firm wholesale prices are positive for Genesis, the Generator 3 outage will have an offsetting effect on the second half FY18 earnings, however Genesis Energy’s ebitdaf guidance for FY18 remains unchanged," the company said.

The company previously gave 2018 guidance for earnings before interest, tax, depreciation, amortisation and fair value adjustments of between $345 million and $365 million, compared to $333 million in 2017. It will provide a further update on the outage as part of its half-year result announcement on Feb. 14, 2018.

The shares last traded at $2.50 and have risen 19 percent this year.

(BusinessDesk)

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