Genesis Energy Limited (NS) Analysis

Overview

Genesis Energy is a New Zealand-owned energy company that fosters strong links with its customers and community stakeholders.

Formed in April 1999, Genesis Energy is a state-owned enterprise with a diverse electricity generation portfolio. Genesis Energy supplies 19 per cent of New Zealand's electricity from its thermal and renewable power stations. It is also a significant energy retailer supplying electricity, natural gas and LPG to more than 658,100 customers across the country.

Our aim is to operate as a commercially-focused sustainable company providing responsible energy solutions to our customers. This underpins the way we operate and do business, how we interact with our customers and stakeholders, and can be seen in our efforts to reduce our impact on the environment.

On the 17th April 2014, Genesis Energy Limited Listed on the NZSX with ordinary shares "GNE".

GNE has been granted Listing with a 'Non-Standard' ("NS") designation. This designation was granted because of provisions in GNE's constitution regulating the ownership and transfer of its Ordinary Shares due to the Crown's shareholding. For further information, please see a copy of the waiver under Documents on GNE's homepage on nzx.com.

Performance

The following information was extracted from Genesis Energy Limited's half year results, released on 21 February 2025:

Genesis Energy (“Genesis”) delivered a strong financial performance in H1 FY25, leveraging portfolio flexibility in a challenging environment posting EBITDAF of $216.5m and NPAT of $70.3m. The financial result was impacted by dry winter conditions and industry wide gas shortages.

Chief Executive, Malcolm Johns, commented “During the winter period, Genesis demonstrated its growing ability to leverage its flexibility, navigating a dry winter, being long gas in the spring and a wet start to summer. The market has been incredibly dynamic. We have been clear that Genesis will no longer fund broad market back-up in either spare generation capacity or stored fuel and we welcome the major players in the sector coming together to explore supporting thermal back up for longer into the transition.

“In addition to leveraging flexibility in our BAU activities, in H1 FY25, we have also made positive progress against our 8by28 key initiatives, accelerating Horizon 2 of the Gen35 strategy. Successful delivery of this strategy will redefine our portfolio in FY28. By FY28 our cashflows will be underpinned by c5 TWh pa of renewable capacity supporting our 6 TWh pa of higher-margin long-term customer demand. New cashflows will be driven from 1,300 MW of flexible generation to manage increasing market volatility in a high renewables grid.”