Inside Genesis' Huntly Power Station. Photo / Alan Gibson.
Genesis Energy, the country's biggest electricity retailer, increased first-half earnings 1.5 percent as it grabbed more customers in a tightly contested retail market and lifted generation volumes, but still hasn't made a decision on whether to can its Huntly power station.
Earnings before interest, tax, depreciation, amortisation and fair value
movements (ebitdaf), a favoured measure by power companies, rose to $175.5 million in the six months ended Dec. 31 from $172.8 million a year earlier, the Auckland-based company said in a statement. The company said it expects annual ebitdaf will be similar to the $344.8 million reported in 2015.
Revenue fell 2 percent to $1.04 billion, even as total customer customer numbers increased 1 percent to 643,721. The partially privatised power company's total generation rose 3 percent to 3,377 gigawatt hours, while the average price received dropped 14 percent to $61.78 per megawatt hour.
Forsyth Barr analyst Andrew Harvey-Green was forecasting largely flat earnings of $172.2 million on a 2.3 percent dip in sales to $1.04 billion.
Net profit dropped 47 percent to $35.9 million, which included a $21 million fall in the fair value of the electricity company's electricity swaps and options, which it said reflected movements in the electricity price path between the dates contracts were entered into and the company's balance date.
