Genesis faces challenges amid gas market conditions

Genesis expects FY25 ebitdaf to be around $460m, but faces challenges due to gas market conditions.

The company said daily gas production at Kupe is anticipated to decline to 37-47 terajoules (TJ), leading to higher generation costs.

Genesis chief executive Malcolm Johns said current gas market conditions would result in a "challenging short-term outlook" for the country.

He reiterated the company's focus on developing new renewable generation, battery storage and repositioning Huntly Power Station into a grid-scale peaking and firming facility.

Genesis also provided an update on its organisational changes, stating that FY25 operating expenditure was on track, while capital expenditure for the year was expected to be around $180m.

This included approximately $80m for a grid-scale battery project at Huntly..

The company's FY24 guidance remained unchanged.

The revision of Kupe's proved and probable reserves is still in process and the final position will be disclosed in Genesis' FY24 full-year results.