Genesis sparks up fleet transition to electric

Genesis will transition all its light vehicles to electric or hybrid by 2020, and 50% of trucks by 2025.

This target is among many new sustainability goals included in Genesis’ latest sustainability framework, launched in its 2018 annual report on August 29.

Chief executive Marc England is passionate about the role EVs can play in New Zealand’s transition to a low carbon future.

“Genesis is not just an electricity generator and retailer, we also have a large LPG distribution operation which includes a fleet of delivery trucks – and trucks also play a key role at our generation sites. That’s why it’s important our commitment to EVs extends beyond light vehicles, and we’re already underway in researching available options in the heavy vehicle space.”

Genesis has already converted 41% of its light vehicle fleet to EV and hybrid, and also encourages staff to use its charging stations for their personal EVs.

“We believe the transition to electric vehicles needs to be led by corporate New Zealand, to make it easier and cheaper for Kiwis to purchase EVs in the second-hand market in the coming years,” England says.

“I’m excited about the role EVs can play in our transition to a low carbon future, and pleased that Genesis will play a key part in that transition.”

Meanwhile, Genesis delivered sustainable growth in FY18 as its integrated portfolio, acquisitions and strategy execution delivered Ebitdaf of $361 million, 8% higher than the prior financial year ($333 million).

Net profit fell to $20 million – an 86% decline on FY17 of $119 million – due to non-cash fair value adjustments, however free cash flow and dividends increased.

The Genesis board has declared a final dividend of 8.6 cents per share, an increase of 2% which has a record date of October 5, 2018, and will be paid on October 19.

England says the result shows the benefit of having different types of power generation, spread throughout the country, as well as other interests in gas production.

“Over the fiscal year we have created a multi-fuel, single service platform to support our yield plus growth investment proposition.”