Genesis underlying profit up 16% on improved retail earnings

Genesis, the country's biggest power retailer, operates the Huntly power station.

Genesis Energy reported a 16 per cent increase in underlying full-year profit, with improved retail earnings offsetting a flat performance from its generation arm and weaker oil production from its Kupe interests.

The country's biggest electricity and gas retailer said net profit more than doubled to $59 million for the year ended June 30, buoyed by $35m of fair value gains. Excluding those gains and other one-time items, underlying profit rose to $67m from $57m a year earlier.

Earnings before interest, tax, depreciation, amortisation and financial instruments rose almost 1 per cent to $363m.

In April, the firm warned that reduced gas supplies from the Pohokura field, lower water in its own hydro catchments and increased coal imports would mean its full-year ebitdaf would fall in the lower end of the $360-375m range it had signalled.

Retail ebitdaf was $13m higher at $123m, wholesale ebitdaf was unchanged at $178m and earnings at Kupe fell to $109m from $115m.

Chief executive Marc England said the firm's retail arm built momentum during the past year, while the wholesale business demonstrated its resilience.

Retail electricity volumes rose 1.5 per cent, driven by increased sales to firms and industry, while a decline in mass-market power accounts was offset by increasing gas and LPG connections.

Coal-fired production at the firm's dual-fuel Rankine units at Huntly doubled to 1,404 GWh in the period in order to offset a 24 per cent fall in the firm's gas-fired generation and a 7 per cent decline in the firm's hydro production.

The company will pay an 8.6 cent final dividend on October 31 to shareholders registered at Oct. 17. That is unchanged from a year earlier and takes the full-year payout to 17.05 cents from 16.9 cents last year.

The firm's shares last traded at $3.365 and have gained about 30 per cent this year.