Announcement
FLLYR: GNE: Genesis Energy 2020 Full Year Financial Results
08:30am
GNE
20/08/2020 08:30
FLLYR
PRICE SENSITIVE
REL: 0830 HRS Genesis Energy Limited (NS)
FLLYR: GNE: Genesis Energy 2020 Full Year Financial Results
GENESIS DELIVERS EARNINGS OF $356 MILLION AND A FULL YEAR DIVIDEND OF
17.20cps
* EBITDAF $356 million, down 4% on FY19 of $369 million
* Net Profit $46 million, down $13 million on FY19 of $59 million
* Underlying Earnings $53 million, down $11 million on FY19 of $64 million
* Earnings Per Share 4.47 cents, down 1.36 cps from FY19 of 5.83 cps
* Underlying Earnings Per Share 5.14 cents, down 1.21 cps fromFY19 of 6.35
cps
* Final Dividend Per Share 8.675 cents, up 1% on FY19 of 8.6 cents
* Full Year Dividend Per Share 17.20 cents, up 1% on FY19 of 17.05 cents
* Free Cash Flow $168 million, down 6% on FY19 of $178 million
Genesis regularly flexed its portfolio of fuels and generation assets to
ensure a solid result during a year of exceptionally dry North Island
conditions, multiple planned and unplanned market outages and the disruption
of COVID-19.
Genesis Energy (GNE) today announced that it delivered EBITDAF for the year
of $356 million and Net Profit (NPAT) of $46 million, with underlying
earnings of $53 million. Genesis declared an increased final dividend of
8.675 cps, and a full year dividend increase to 17.20 cents per share.
"The second half of FY20 tested our portfolio flexibility through multiple
gas and transmission outages, exceptionally low North Island hydro catchment
inflows and the COVID-19 lockdown. Despite those uncontrollable events,
Genesis people demonstrated great resilience and adapted quickly to support
our customers through difficult conditions," said Genesis Energy CEO Marc
England.
"Overall, hydro generation fell by 491 GWh versus the year prior. This meant
Huntly Power Station's back-up generation was called upon more regularly to
stabilise wholesale electricity prices for all market participants."
On top of these volatile conditions was the national COVID-19 disruption,
which affected industrial and commercial electricity consumption, but was
partially offset by an increase in consumption from residential customers.
"Our retail business has continued its momentum from the first half, backed
by increased uptake of our digital products and promotions, such as Power
Shout, which saw a record 141,000 customers participate in May. Genesis now
has 121,000 dual fuel customers, an increase of 3%. Our new customer care
package, launched at the end of 2019, was boosted by $250,000 to support our
vulnerable customers facing hardship during the COVID-19 lockdown."
"Genesis' uniquely diversified generation portfolio, flexible retail products
and strong customer support networks have demonstrated our value to all
market participants. I am proud to say that our business strategy has been
thoroughly stress tested this year and has performed under the challenging
conditions.
"We are continuing our Future-gen strategy with a target to develop 2,650 GWh
of new renewable generation options that will enable us to transition our
baseload thermal generation portfolio to renewables. We will achieve the
first 450 GWh of this, as Waipipi Wind Farm comes online in early 2021.
Having already removed 1.8 million tonnes of CO2 from our portfolio in the
last 10 years, Future-gen will enable us to further reduce our carbon
emissions by another 1 million tonnes in the next 5 to 10 years. The closure
of the Tiwai smelter, if it goes ahead, represents an exciting prospect to
potentially accelerate our Future-gen strategy."
Final dividend and a dividend reinvestment plan
The Genesis Board has declared a final dividend of 8.675 cents per share,
which has a record date of 11 September 2020 and will be paid on 25 September
2020. Genesis is pleased to confirm the continuation of its dividend
reinvestment plan to provide shareholders a cost-effective way to reinvest in
Genesis' growth strategy. Shareholders will have until 14 September 2020 to
opt into the dividend reinvestment plan.
FY21 guidance
EBITDAF guidance for the full year ended 30 June 2021 is in a range of
between $395 million to $415 million. This is subject to hydrological
conditions, any material events, one-off expenses or other unforeseen
circumstances. Genesis continues to target its strategic goal of $400+
million EBITDAF in FY21. Capital expenditure guidance for FY21 is up to $95
million.
Further information on the company's operations and financing can be found in
the investor presentation of the full year results and the Company's Annual
Report at nzx.com/instruments/GNE and
www.genesisenergy.co.nz/reports-and-presentations
ENDS
For media enquiries, please contact:
Allan Swann
External Communications Manager
M: 027 211 4874
For investor relations enquiries, please contact:
Cameron Parker
Investor Relations Manager
M: 021 241 3150
About Genesis Energy
Genesis Energy (NZX: GNE, ASX: GNE) is a diversified New Zealand energy
company. Genesis sells electricity, reticulated natural gas and LPG through
its retail brands of Genesis Energy and Energy Online and is New Zealand's
largest energy retailer. The Company generates electricity from a diverse
portfolio of thermal and renewable generation assets located in different
parts of the country. Genesis also has a 46% interest in the Kupe Joint
Venture, which owns the Kupe Oil and Gas Field offshore of Taranaki, New
Zealand. More information can be found at www.genesisenergy.co.nz
End CA:00358324 For:GNE Type:FLLYR Time:2020-08-20 08:30:53
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