Genesis Energy posts strong financials

A 42% rise in operating earnings (from EBITDAF $210 million to $298m) has been reported by Genesis Energy for its half year result for FY23.

The energy generator and retailer also raised EBITDAF guidance $15m (from $500m to $515m) for the 2023 full year.

Customer numbers increased (10,273 customers to reach 481,285 – a 2.2% increase). and carbon emissions dropped during the six months, says Genesis Energy.

The revaluation of long-term contracts has resulted in a net profit after tax (NPAT) of $145m, a 72% increase on the same period last year, it adds.

Genesis generated a record 2034GWh from its three hydro schemes, 43% more than H1 FY22. Conversely, this reduced thermal generation at the Huntly Power Station to record lows, significantly lowering fuel costs and reducing carbon emissions from generation by 470,000 tonnes (a 52% reduction versus H1 FY22), it says.

“Huntly will continue to be critical to the country’s electricity system looking ahead, and the company is committed to explore more renewable fuel options to replace coal,” says interim chief executive Tracey Hickman.

A successful trial burn of biomass at Huntly Power Station on February 14 is reported by Genesis Energy, along with securing the first site in its development of up to 500MW of grid scale solar generation.

The company declared an interim dividend of 8.80cps.

“These results fall at an incredibly challenging time for many New Zealanders, with Cyclone Gabrielle and the Auckland floods,” Hickman adds.

“Genesis continues to offer support to communities and customers affected.”

Previous Christchurch Airport chief executive Malcolm Johns joins Genesis Energy as its new chief executive on March 6.

Genesis launched EVerywhere in September, hailing it New Zealand’s first “energy roaming” service for EV drivers, adding it will make EV charging on the road cheaper and easier.

“EVerywhere enables customers to use ChargeNet stations for the same price they pay to charge at home, saving up to 70% in on-road charging costs.”

Genesis and its solar joint venture partner FRV Australia recently announced a fully consented 90 hectare site near Lauriston on the Canterbury Plains had been secured.

 The site is expected to start generating electricity in late 2024 and will hold about 80,000 solar panels with a capacity of 52MW and generate around 80GWh of renewable electricity annually – enough to power nearly 10,000 houses.

Genesis Energy’s report follows one from Mercury and backs reports New Zealand energy companies have had good results.