28 Aug 2012

$100m rebound gives Genesis a fat profit

6:29 am on 28 August 2012

Genesis Energy's annual profit has surged to more than $90 million from a $17 million loss last year.

The state-owned power company says revenue rose by a quarter to nearly $2.3 billion and earnings rose by one third.

Chief financial officer Andrew Donaldson says the result was achieved despite intense competition for customers and a volatile wholesale market.

The wholesale electricity market has been volatile over the past year with extremely dry conditions causing low hydro lake storage levels, before heavy rain boosted storage levels.

Higher wholesale electricity prices, gas sales and generation volumes added to a strong contribution from the Kupe oil and gas field, in which Genesis has a one-third stake.

The result was achieved despite a volatile wholesale electricity market and one of the highest customer churn rates in the world.

Genesis also owns Huntly Power Station, three hydro schemes and a wind farm.

It wants to improve retail margins and at least maintain market share.

Genesis says it has received Waikato Regional Council consent to run Huntly for another 25 years and is working on a range of wind farm options.