Genesis Energy (GNE) continued to grow in H1 FY23, with EBITDAF of $298 million.

During the six-month period customer numbers increased and carbon emissions declined. The company delivered H1 EBITDAF of $298 million, an increase of 42% from $210 million in H1 FY22.

The revaluation of long-term contracts has resulted in a Net Profit After Tax (NPAT) of $145 million, a 72% increase on the same period last year. Note NPAT includes changes in the forecast return on long-term electricity supply contracts such as power purchase agreements for renewable generation. It does not represent realised cash profit today. Genesis was able to generate a record 2,034 GWh from its three hydro schemes, 43% more than H1 FY22. Conversely, this reduced thermal generation at Huntly Power Station to record lows, significantly lowering fuel costs and reducing carbon emissions from generation by 470,000 tonnes (a 52% reduction versus H1 FY22). The Company declared an interim dividend of 8.80 cps.

This represents continued value for shareholders while retaining capability for future investment. Interim Chief Executive Tracey Hickman said, 'these results fall at an incredibly challenging time for many New Zealanders, with Cyclone Gabrielle and the Auckland floods. Genesis continues to offer support to communities and customers affected.' Genesis enjoyed strong customer growth, gaining 10,273 customers to reach a total of 481,285, an increase of 2.2%. Residential churn also declined by 1ppt to 12% from the same period in FY22. Genesis has progressed its strategic priorities, helping create a low-carbon future for New Zealand powered by renewable energy. This work included a successful trial burn of biomass at Huntly Power Station and securing the first site in its development of up to 500MW of grid scale solar generation.

Biomass trial at Huntly

Genesis successfully completed a biomass burn trial at Huntly Power Station on 14 February, a significant step in its search for alternative fuel options for the Company's thermal plant at Huntly. Biomass is seen internationally as a viable alternative to fossil fuels, in particular, in manufacturing and some industrial processes. Hickman commented, 'Huntly will continue to be critical to the country's electricity system looking ahead, and the company is committed to explore more renewable fuel options to replace coal. Genesis has signed an agreement with Fonterra to work together in exploring the viability of a sustainable local supply chain of biomass. We'll also collaborate with other industry partners as we attempt to reduce carbon emissions in our respective sectors.'

Contact:

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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 and Frank Energy and is one of New Zealand's largest energy retailers with more than 480,000 customers. 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. Genesis had revenue of $NZ2.8 billion during the 12 months ended 30 June 2022.

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