Genesis Energy has announced a strategy reset, outlining plans to use profits from the Kupe gas field to support the development of renewable generation and grid-scale battery storage.
The company aims to achieve 95% renewable generation by 2035, in line with New Zealand's overall generation.
The investment in solar, battery storage, and wind is expected to increase Genesis' renewable portfolio by 160%, to around 8,300 gigawatt-hours.
The company will also focus on partnering with customers to accelerate the electrification of homes and businesses.
The Huntly Power Station will continue to play a significant role in Genesis' supply side plans, along with hydro assets, solar, and wind.
The company is also considering the option of developing offshore wind using the Kupe field.
In terms of financial outlook, Genesis forecasts earnings growth driven by its Gen35 strategy, with EBITDAF expected to be around $500 million in the 2025 financial year.
The board has updated the dividend policy to direct free cash flow from Kupe to renewables development.
Total dividends for the 2024 financial year are guided at 14 cents per share.
The company will aim to maintain dividends in real terms and grow them where appropriate.
The FY24 EBITDAF guidance remains unchanged at $430 million.
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