Profits up at Genesis Energy

An artist's impression of the planned Genesis power station in Rodney, north of Auckland.

Genesis Energy has reported a $48.93 million profit in the six months to December 31, up from $31.39m in the same period last year.

The state owned energy company said the profit was bigger than it had expected. It attributed this to lower cost of sales and lower operating expenses and higher operating revenue.

The profit was achieved on operating revenue of $960.1m, up from $843.9m last year.

Post balance date the company purchased 15.1 per cent of the Cardiff gas prospect off Taranaki. It already owned 40 per cent and has the right to buy all the prospect's gas. The Minister of Energy agreed to the purchase on January 29.

The gas is to be used for its proposed power station in Rodney north of Auckland. Support for the project from the new government has been in doubt.

Genesis said in the interim report that a decision to seek consents did not mean the project would go ahead.

- NZPA