Genesis Energy announces 07/08 financial results

Genesis Energy announces 2007/2008 financial results

Genesis Energy, the electricity and gas supplier, today announced its financial results for the year ended 30 June 2008.

Greater generation volumes from the company’s thermal and hydro-electric power stations were largely responsible for an increase in profit to $99.1 million from $89.5 million [NPAT was reported as $61.3m in 2006/07 but has been restated under new New Zealand International Financial Reporting Standards.] in the previous year. Revenue also increased to $2,482 million from $1,771 million in the previous year.

Decreasing South Island hydro lake levels in the second half of the year necessarily resulted in greater generation from the company’s thermal plant at Huntly. Thermal volumes, therefore, increased from 6,318GWh in 2006/07 to 7,575GWh in the year to the end of June 2008. Total generation volumes grew from 7,992GWh to 9,126Gwh.

The increase in thermal generation consequentially resulted in a higher fuel burn and cost. Total fuel used in generation increased to 70.2PJ from 67.1PJ in the previous year. However, the split between coal and gas narrowed from 41PJ of coal and 26.2PJ of gas in the previous year to 35.8PJ of coal and 34.4PJ of gas in the year under review. The increasing use of gas was due to the commissioning and continued operation of Huntly Unit 5, the 400MW combined cycle gas turbine (CCGT). The higher use of gas also resulted in a 13% reduction in the carbon intensity of the company’s generation business.

Genesis Energy’s Chairman, Brian Corban, QSO, said the high generation levels would not have been achieved without the hard work of production staff and excellent reliability of both the 25-year-old Huntly Units 1 - 4 and the much newer Mitsubishi CCGT.

“This reliability and generation volume was critically important in supporting the country’s energy needs during the winter 2008 period,” he said.

Despite strong pricing competition, Genesis Energy continued to attract new electricity and gas customers. The company also launched a retail LPG business and completed a trial of 4,000 new technology advanced meters in customers’ homes and businesses.

Subsequent to balance date, Genesis Energy announced an agreement with NGC Metering to provide this new technology to 500,000 homes and businesses by the end of 2013 to assist in better individual household management of energy consumption and its cost.

ENDS

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