Genesis Energy's profit soars

  • 25/08/2015

Annual profit for the country's largest electricity and gas retailer Genesis Energy has jumped 113 percent to $104.8 million.

Despite what it called a challenging year, its first full year of operation since being partially privatised, the company boosted profit from $49.2m a year earlier.

Most of the gains came from fair value charges on the back of lower than predicted wholesale electricity prices.

Earnings before interest, tax, depreciation, amortisation and movements in the fair value of financial instruments, often seen as a preferred measure for underlying performance, rose 12 percent to $344.8m.

The company will pay 8 cents per share final dividend an increase from last year's 6.6 cents, taking total distributions in the current financial year to 16 cents, compared with 13 cents in the previous financial year.

Falling global oil prices saw returns from Genesis's 31 percent interest in the Kupe oil and gas field fall, with the oil and gas segment of operations also declined.

Its total electricity, gas and LPG customers slipped 2 percent to 636,676.

Genesis used 31 percent more coal and 5 percent less gas on electricity production during the year.

It confirmed the two remaining 250MW gas and coal-fired units at its Huntly power station site would close in 2018, barring a major change in market conditions.

Genesis has been running down coal stockpiles at Huntly in anticipation of the closure and last week cancelled its coal contract with Solid Energy, using the state-owned coal miner's financial distress as a trigger to quit existing contracts early.