Announcement
MKTUPDTE: GNE: Q3 Performance Report and Market Update
08:30am
GNE
18/04/2019 08:30
MKTUPDTE
PRICE SENSITIVE
REL: 0830 HRS Genesis Energy Limited (NS)
MKTUPDTE: GNE: Q3 Performance Report and Market Update
FY19 Q3 PERFORMANCE REPORT AND MARKET UPDATE
Genesis Energy today released to the NZX/ASX its FY19 Q3 Performance Report
for the three months ended 31 March 2019, which includes an update on
guidance for the year end, 30 June 2019. The FY19 Q3 Performance Report is
available from the Genesis Energy page at www.nzx.com or
https://www.genesisenergy.co.nz/investors/reports-and-presentations#quarterly
.
FY19 Q3 PERFORMANCE SUMMARY
CUSTOMER
Genesis' focus on its customers has received a positive response from the
market with improvements in both brand NPS and interaction NPS. Genesis'
gross churn, a new disclosure for the quarter, is down 1.8 ppt whilst net
churn is also down. Dual fuel customer numbers continue to steadily
increase, while netback margins were up across all fuels. Sales into the
residential market segment remain under pressure, whilst Genesis' focus on
its portfolio optimisation has resulted in further growth across its business
segment.
WHOLESALE
Genesis' long volume in the market was curtailed this quarter by a
combination of low inflows, swaption calls and ongoing market gas
constraints. Portfolio fuel costs increased 32% on the same period last year,
due to the increased cost of imported coal and reduced hydro generation.
Total generation for the period was up 9%, however hydro generation was down
23%. Wholesale market prices remained high throughout the quarter with gas
supply constraints and below average hydro inflows.
"The wholesale market was challenging this quarter, with ongoing gas
constraints and low hydro inflows in the North Island impacting long volumes
in the market. This was in part mitigated by the decision to bring back Unit
2 at Huntly," said Tracey Hickman, Executive General Manager - Generation &
Wholesale.
KUPE
Kupe operated at nearly 96% of capacity over the period, following scheduled
statutory maintenance undertaken in the previous quarter. Gas production was
up 2.5% versus the same time last year, LPG yield was up 9.2% whilst oil
yield was down 9% due to the natural decline in the field.
MARKET UPDATE
Genesis now expects an outcome towards the lower end of its previously stated
FY19 EBITDAF guidance of $360 million to $375 million. This follows an
exceptional period of Pohokura gas constraints and a greater use of more
expensive imported coal, and low hydro storage following a period of low
inflows in the Genesis catchments. Genesis's gas entitlements from the
Pohokura field for the past quarter have been down 5% on the prior comparable
period and are expected to continue to be down during parts of April and May
as the well workovers are completed and the rig is demobilised from the
platform.
ENDS
For media enquiries, please contact:
Emma-Kate Greer
Group Manager Corporate Relations
M: 027 655 4499
For investor relations enquiries, please contact:
Wendy Jenkins
General Manager Finance - Planning and Customer
Genesis Energy
P: 09 951 9355
M: 027 471 2377
About Genesis Energy
Genesis Energy (NZX: GNE, ASX: GNE) is a diversified New Zealand energy
company. It sells electricity, reticulated natural gas and LPG through its
retail brands of Genesis Energy and Energy Online. It is New Zealand's
largest energy retailer with around 500,000 customers. The Company generates
electricity from a diverse portfolio of thermal and renewable generation
assets located in different parts of the country. Genesis Energy also has a
46% interest in the Kupe Joint Venture, which owns the Kupe Oil and Gas Field
offshore of Taranaki, New Zealand. Genesis Energy had revenue of $NZ2.3bn
during the 12 months ended 30 June 2018. More information can be found at
www.genesisenergy.co.nz
End CA:00333503 For:GNE Type:MKTUPDTE Time:2019-04-18 08:30:35
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