Genesis Energy's head office in Auckland. Photo: Supplied / Genesis Energy
Key numbers for the six months ended December compared with a year ago:
- Net profit $70.3 vs $38.3m
- Revenue $1.7b vs $1.38B
- EBITDAF $216.5m vs $202.1m*
- Interim dividend 7.1 cents per share vs 6.75 cps
*Earnings before interest, tax, depreciation, amortisation, fair value instruments - a measure of operating earnings.
Genesis' earnings rose strongly as it benefited from the surge in wholesale prices for its coal and gas electricity last winter, raised consumer prices, and gained from the increased value of its hedging contracts.
Chief executive Malcolm Johns said the company's range of power generation options - from hydro to coal and gas - worked to its advantage.
"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."
However, Johns said Genesis was not going to carry the cost by itself for ensuring nationwide power security through burning coal at its Huntly station.
Genesis Energy chief executive Malcolm Johns Photo: Supplied / Brett Phibbs / PhibbsVisuals
"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."
Last week Genesis and the other big three "gentailers" - Meridian, Mercury, Contact - started work on an industry agreement to create a strategic coal reserve for dry years.
Customer numbers increased 5 percent for Genesis's main brand and its Frank offshoot, along with growth in electric vehicle connections, while gas consumers fell.
The company has been investing in solar farms and big battery storage in its move to be mostly renewable power generator, while it is looking to replace coal and gas progressively with wood based biomass.
Genesis retained its forecast of full year operating earnings of $460m.
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