Delivering Sustainable Growth with Ebitdaf up 8%
* EBITDAF $361 million, 8% increase on FY17 of $333
* NPAT $20 million, 86% decline on FY17 of $119 million
* Earnings per share 1.98 cents
* Dividends per share 16.9 cents
Strong sustainable growth and a commitment to a more future-focused New Zealand:
Genesis Energy (GNE) announced today that it delivered sustainable growth in FY18 as its integrated portfolio, acquisitions and strategy execution delivered EBITDAF1 of $361 million, 8% higher than the prior financial year. Net profit fell to $20 million due to non-cash fair value adjustments, however free cash flow and dividends increased.
Genesis Chairman, Dame Jenny Shipley, said the result reflects strong performance as the integration between Kupe and the company’s flexible generation portfolio delivered value in response to variable wholesale market conditions. The Customer Segment performed well in a year of transition that included the integration of a new LPG operation, a billing system migration and a brand relaunch with the backdrop of increasing electricity market competition.
“The Genesis Board, Executive and I are also proud to share Genesis’ Sustainability Framework with you as part of our Annual Report. This document underlines the Company’s ongoing commitment to deliver sustainable growth for shareholders, innovation for our customers, a supportive workplace for our people and lasting benefits to society,” says Dame Jenny.
Chief Executive, Marc England, said Genesis has demonstrated the value in a diverse portfolio this year, not only across a geographically and fuel diverse electricity generation portfolio but also between the different business models of the Kupe Joint Venture, Wholesale Electricity and our multi-fuel Customer Segment.
“Over FY18 we have created a multi-fuel, single service platform to support our yield plus growth investment proposition. Today, Genesis customers have more knowledge and visibility than they have ever had to help them monitor, predict and compare their energy spend. We are now also adding a holistic approach to sustainability as we demonstrate commitment to supporting New Zealand’s transition to a low emissions economy,” says England.
Final dividend and a dividend reinvestment plan:
The Genesis board has declared a final dividend of 8.6 cents per share, an increase of 2% which has a record date of 5 October 2018 and will be paid on 19 October 2018.
Genesis is pleased to announce the continuation of its dividend reinvestment plan introduced at the half year FY18 to provide shareholders a cost-effective way to reinvest in Genesis’ growth strategy. The New Zealand government has committed to participate to the extent required to retain its 51% holding. Shareholders will have until 5 October 2018 to opt into the dividend reinvestment plan.
EBITDAF guidance for the full year ended 30 June 2019 is in a range of between $350 million to $370 million. This assumes average hydrological conditions, and includes the forecast impact from the planned Huntly Unit 5 mid-life outage estimated at a 50 day duration. Capital expenditure guidance for FY19 is up to $85 million.
Further information on the company’s operations and financing can be found in the investor presentation of the full year results at nzx.com/markets/NZSX/securities/GNE and www.genesisenergy.co.nz/presentations.