Satisfactory first half for Genesis Energy

Satisfactory first half for Genesis Energy

In the first six months of its financial year to the end of June 2009 Genesis Energy produced an un-audited net profit after tax (NPAT) of $49 million ($31 million in 2007). The result included a net gain of $6 million on the valuation of derivatives.

Operating revenue for the six months to 31 December 2008 increased to $1,045 million from $934 million in the same period in 2007. Capital expenditure during the half year totalled $101 million and was principally applied to the Kupe Gas Project.

The Chairman of Genesis Energy, Brian Corban, CNZM, QSO, said the first half financial performance was achieved in an electricity generation environment of high thermal output in the first quarter at comparatively high wholesale prices, followed by lower generation volumes and lower wholesale prices in the second quarter, as national hydro storage recovered from the ‘dry’ winter. Genesis Energy’s own renewable generation also produced lower than expected volumes in the period.

“Against this backdrop of reduced renewable output and restricted wholesale prices, the company was able to produce a satisfactory net profit. This was due to our focus on reducing expenses and reduced cost of sales,” he said.

Chief Executive Albert Brantley said substantive progress had been achieved during the half year on the long term sustainability of the business. Work had accelerated on new renewable generation projects and on planning for the Emissions Trading Scheme, which is due to apply to the stationary electricity sector by January 2010.

Mr Brantley said the company was also grateful for its customers’ ongoing support.
“We appreciate that the electricity and gas markets are competitive and our customers do have choice. We thank them for their business. Our goal is to provide our customers with competitive responsible energy solutions,” he said.

ENDS

© Scoop Media