Genesis Energy earnings drop 32%, customer base grows

Genesis Energy has reported a 32% decline in earnings for the first half of the financial year, reaching $202 million.

The company's customer base, however, saw growth for the fourth consecutive quarter, with the addition of nearly 9,500 customers, representing a 2% increase.

The lower earnings were attributed to the increased generation costs caused by lower hydro inflows and the extended outage of Unit 5 at the Huntly Power Station.

These factors also contributed to a $71.3m decrease in gross margin.

As a result, net profit after tax plummeted by 74% to $38m.

Genesis Energy stated that it is on track with the execution of its long-term growth strategy, Gen35, and is currently undergoing a review of its retail operating model, which is expected to result in a reduction of around 200 roles.

The company's chief executive, Malcolm Johns, acknowledged the challenging operating environment and highlighted the importance of thermal generation to system security.