Genesis Energy became the latest electricity company to increase its distributions to shareholders as it reported a 113 per cent increase in net profit of $104.8 million on marginally increased revenues of $2.1 billion in the year to June 30.
Chair Jenny Shipley said in a statement the board was "satisfied" with a "strong" performance from Genesis, the country's largest electricity and gas retailer, in its first full year of operation since being partially privatised in April 2014.
The company also said chief executive Albert Brantley will leave next year.
Earnings before interest, tax, depreciation, amortisation and movements in the fair value of financial instruments, often seen as a preferred measure for underlying performance, rose 12 percent to $344.8 million.
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Advertise with NZME.The company will pay an 8 cents per share final dividend on October 6, an increase from last year's 6.6 cents, taking total distributions in the current financial year to 16 cents, compared with 13 cents in the previous financial year.
That equates to 80.9 per cent of free cash flow, compared with 80.4 percent the previous year.
Free cash flow at $197.7 million was 22 per cent higher than the previous year.
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Falling global oil prices saw returns from Genesis's 31 percent interest in the Kupe oil and gas field fall, with the oil and gas segment of operations showing a 13 per cent drop in Ebitdaf to $93.5 million, with Kupe contributing 27 per cent of Ebitdaf in the latest year, compared with 35 per cent the previous year.
Improved cost-to-serve ratios saw the 'customer experience' segment improve Ebitdaf earnings by $4.7 million to $87.2 million, while the energy management segment, which measures the company's wholesale electricity generation operations, showed a $32.2 million improvement, up 19 per cent on the previous year, at $201.1 million.
Contributors to that result were a 4 per cent increase in total electricity generated to 6,698 Gigawatt hours, and a 7 per cent improvement in the average price received for wholesale electricity, at $75.41 per Megawatt hour.
Total electricity, gas and LPG customers slipped 2 percent to 636,676.
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Advertise with NZME.Genesis used 31 per cent more coal and 5 per cent less gas on electricity production during the year.
Today's statement confirmed the two remaining 250MW gas and coal-fired units at its Huntly power station site would close in 2018, barring a major change in market conditions.
Genesis has been running down coal stockpiles at Huntly in anticipation of the closure and last week cancelled its coal contract with Solid Energy, using the state-owned coal miner's financial distress as a trigger to quit existing contracts early.
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