Genesis Energy (GNE) H1 2025 earnings summary

Executive summary

• Achieved H1 FY25 EBITDA/EBITDAF of NZD 216.5 million, up 7% year-over-year, with net profit of NZD 70.3 million, leveraging portfolio flexibility amid volatile market conditions and national gas shortages.

• Advanced strategic initiatives including retail transformation, digital projects, renewable project pipeline, and flexible generation investments.

• Completed significant retail restructure, reducing 200 FTEs and delivering NZD 20 million annualized cost savings.

• Expanded renewable generation with Lauriston Solar Farm operational, new solar/wind projects progressing, and key acquisitions in EV infrastructure.

• Interim dividend of 7.13 cps declared, fully imputed, with investment grade credit rating reaffirmed at BBB+ stable.

Financial highlights

• Revenue increased 27% year-over-year to NZD 1,761.2 million, driven by higher thermal generation, spot prices, and retail price increases.

• EBITDAF grew 7% to NZD 216.5 million; NPAT surged 84% to NZD 70.3 million; EPS increased 81% to 6.5 cps.

• Gross margin impacted by expensive gas contracts during a dry winter, but portfolio flexibility allowed recovery as hydrology improved.

• Operating expenses for the half were NZD 192 million, with people costs at NZD 79 million, including one-off restructuring and wage inflation.

• Operating cash flow was NZD 126.3 million, down from NZD 210.8 million in H1 FY24.

Outlook and guidance

• FY25 EBITDA/EBITDAF guidance maintained at around NZD 460 million, assuming normal hydro and gas availability and no major adverse events.

• Targeting mid-500s NZD million EBITDAF by FY28 through strategic initiatives, with continued investment in renewables and flexibility.

• CapEx guidance to 2030 remains at NZD 1.1 billion, with FY25 capex expected between NZD 130–140 million.

• Focus on displacing 2 TWh of baseload gas generation with renewables by 2030 and monetizing flexible generation assets.

• Preparing for another challenging winter with tight gas supplies and high demand for flexible generation.