26 Aug 2021

Genesis profit down more than quarter

11:55 am on 26 August 2021

Genesis Energy's full year profit is down more than a quarter as rising costs eroded gains in revenue.

Genesis Energy's Huntly Power Station.

Huntly power station. Photo: Genesis Energy

The energy generator and retailer said the result followed a challenging year with persistently low hydro inflows and declining gas supply.

The company's revenue was up nearly a quarter, but it paid $33 million more for carbon fuels, and also paid out $53m, following an unfavourable arbitration decision over a gas liability.

Key Numbers

For the 12 months to June 2021 against 2020

  • Net profit after tax $33.5 vs $46m dn 27 percent
  • Operating profit $358m vs $356m up 0.6 percent
  • Revenue $3.22b vs $2.59b up 24 percent
  • Dividend 17.4cps vs 17.2cps up 1.2 percent

"The value of our generation portfolio was demonstrated by our ability to temporarily reinstate a generator at Huntly Power Station to compensate for the shortfall in renewable generation and ensure hydro levels could be conserved ahead of winter," Genesis chief executive Marc England said.

He said the retail business had gone from strength to strength, through increased engagement with customers and free hours of power.

Genesis expected the current year's result to be better than the last with a forecast underlying operating profit of between $420m and $440m.

England said Genesis's investments in renewable energy generation put it on track to remove 1.2m tonnes of carbon emissions a year by 2025.

It was planning to spend up to $95m on capital costs this year.

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