Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More

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

 

Genesis Interim Result released this morning

FY19 Interim Results Announcement
27/2/2019, 8:30 am INTERIM
NET PROFIT UP, DEBT DOWN AS GENESIS BUILDS MOMENTUM

* EBITDAF $196 million, 2% decrease on HY18 of $198 million
* Net Profit $49 million, 78% increase on HY18 of $28 million
* Underlying Earnings $43 million, 4% increase on HY18 of $42 million
* Earnings per share 4.87 cents, up 76% from 2.76 cps
* Underlying Earnings per share 4.30 cents, up 3% from 4.18 cps
* Dividend per share 8.45 cents, up 1.8% on HY18 on 8.3 cents
* Free Cash Flow $111 million, 15% decrease on HY18 of $130 million

Today, Genesis Energy (GNE) announced a solid first half FY19 result. EBITDAF for the period was $196 million, just 2% below the prior year’s record result.

Net profit for the period was $49 million, up from $28 million last year. This is primarily due to fair value adjustments and lower depreciation due to a reduction in asset revaluations in FY18. On a normalised basis Genesis produced $43 million in underlying earnings, a 4% increase on the prior year.

“Across the business, we continue to see the benefits of our product-led strategy pay off in a highly price-competitive market. Gross customer churn is down 4.8% and the number of customers choosing to have multiple fuels with Genesis is up 6.4%. Both outcomes show that investing in great service, innovative products and loyalty initiatives is right for Genesis customers,” says Marc England, Chief Executive Genesis.

“Digital innovation is central to giving our customers greater understanding and control over their energy spend.
This half year we have launched two new products, Energy Audits and Bottled Gas Monitoring for businesses. Genesis’ new and existing products are increasingly digital by design and digital customer interactions now make up 56% of all interactions, up from 43% two years ago. This is enabling a lower cost, higher value model to emerge, driving up netback margins and growing the Customer segment’s contribution to the business.”

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

This result was achieved during a period when the electricity sector was impacted by a national fuel supply shock caused by unprecedented gas shortages, low hydrology and cyclical plant outages. Across the six-month period, Genesis was regularly called on to run its Rankine units to help maintain security of supply.

Mr. England says the Rankine units exist for exactly this purpose.

“The Rankines enable New Zealand to operate an 85% renewable electricity system, at a relatively low cost. Effectively, Genesis’ Rankines act as back-up when the country experiences water or natural gas shortages. During the six months to the end of December, Genesis demonstrated record high asset reliability as our employees put in long hours to ensure our generation assets were available for the market.”

Mr. England notes Genesis’ Wholesale segment performed well across very volatile conditions. However, its performance was moderated by low hydro inflows, plant outages, supporting contractual commitments with competitors and the cost of voluntary market making commitments. The Kupe segment performed slightly below the prior year due to planned outages and lower production, despite higher fuel prices.

INTERIM DIVIDEND AND DIVIDEND REINVESTMENT PLAN

The Genesis board has declared an interim dividend of 8.45 cents per share, an increase of 1.8% which has a record date of 4 April 2019 and will be paid on 18 April 2019.

Genesis is pleased to announce the continuation of its dividend reinvestment plan 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 4 April 2019 to opt into the dividend reinvestment plan.

FY2019 GUIDANCE

EBITDAF guidance for the full year ended 30 June 2019 has been updated to a range of between $360 million and $375 million. Capital expenditure guidance for FY19 remains unchanged at 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.

ENDS

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Business Headlines | Sci-Tech Headlines

 
GenPro: General Practices Begin Issuing Clause 14 Notices

GenPro has been copied into a rising number of Clause 14 notices issued since the NZNO lodged its Primary Practice Pay Equity Claim against General Practice employers in December 2023.More

SPADA: Screen Industry Unites For Streaming Platform Regulation & Intellectual Property Protections

In an unprecedented international collaboration, representatives of screen producing organisations from around the world have released a joint statement.More

 
 
 
 
 
 
 
 
 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.