Genesis Energy's net profit halved to $85 million in the year to June, even as the power company reported an 11% lift in underlying earnings and raised its dividend.
The gentailer, one of New Zealand's "big four" power companies with nearly 500,000 customers, said net profit after tax fell 50% from $169 million a year earlier, a fall it attributed to revaluations.
On the measure the company favours, normalised EBITDAF (earnings before interest, tax, depreciation, amortisation and financial instruments) rose 11% to $522 million, while gross margin climbed 10% to $949 million.
Genesis lifted its dividend 4% to 14.88 cents per share and grew operating free cash flow 24% to $322 million. A $400 million equity raise during the year cut leverage and kept the company's BBB+ investment grade credit rating.
Genesis Energy chief executive Malcolm Johns said the result reflected delivery of the company's Gen35 strategy.
"FY26 was another year of disciplined execution of our Gen35 strategy to deliver for our customers and investors," he said.
"We have continued to improve the quality of our earnings by embedding margin quality, cost discipline and strong capital management into every part of our business."
Johns said the company had "positioned our balance sheet for growth" and would invest around $3 billion over the next five years on generation and customer products and services.
Genesis pushed ahead on several renewable projects during the year. It started construction on the 136 MWp Tihori solar farm (formerly Edgecumbe), reached a final investment decision on the Leeston solar farm and acquired the 271 MWp Rangiriri solar farm.
Commissioning is under way on the first stage of a battery storage system at its Huntly power station, due to be fully operational by next month.
Johns said Huntly's changing role was central to the company's plans.
"Through our large customer base, growing renewable generation and Huntly's evolving role to firm our increasing solar and wind generation, we are structurally lowering our average cost of generation while strengthening the flexibility we need," he said.
For FY27, Genesis expects normalised EBITDAF of $480 million to $520 million, assuming normal hydrological conditions and no material adverse events.
The morning's headlines in 90 seconds, including hundreds missing after a landslide in Nepal, and Meta settles a massive lawsuit over alleged harm to children. (Source: 1News)
SHARE ME