Genesis Energy sees record renewable generation, lower profits

Genesis Energy reported strong financial performance in FY23, with EBITDAF of $523.5 million.

The company achieved growth across all customer brands, improved margins, and reduced emissions.

The favorable hydro conditions resulted in 65% of the company's generation coming from renewable sources, the highest proportion since its formation in 1999.

This led to a significant reduction in thermal generation and fuel costs, as well as a 45% decrease in emissions compared to the previous year.

However, lower thermal generation and increased costs for insurance, software, staff, and Kupe contributed to a 16% drop in revenue and a 12% decrease in net profit after tax.

The company declared a final dividend of 8.8 cps, bringing the annual declared dividend to 17.6 cps.

Genesis Energy plans to invest in new renewable generation, including a solar farm in Canterbury and three other sites in the North Island.

The company is also reviewing its long-term strategy and has made new executive appointments to strengthen its leadership team.

FY24 EBITDAF is expected to be around $430 million, subject to various factors.