Genesis Energy Q2 FY17 Performance Report

REINVIGORATED STRATEGY UNDERWAY

During the quarter Genesis Energy announced a reinvigorated strategy focused
on optimising its business to improve short term returns, innovation for medium
term growth and investing for long term value creation. Despite continued
challenges in the retail sector, there was growth in the target LPG market.

In a competitive retail environment, electricity customer connections remained
under pressure finishing the quarter down 1.2% on Q1 FY2017 to 514,155 at 31
December 2016. The decline in customer connections combined with reduced
national demand relative to the same period last year saw a reduction in both
mass market and time of use (TOU) electricity volumes sold by 3.2% and 3.6%
respectively. The move towards digitisation is evidenced by increased uptake in
app downloads and the use of self service. Genesis Energy and Energy Online
app downloads totalled 105,043 at the end of December 2016.

Retail gas sales during the quarter remained flat at 1.7 PJ on Q2 FY2016, whilst
year to date volumes sold were up 1% on the prior year.

Q2 FY2017 provided further growth in the retail LPG segment for Genesis Energy.
LPG customer connections of 17,513 at 31 December 2016 were up 5% on Q1
FY2017 and up 22% on Q2 FY2016. Retail LPG sales volumes of 1,101 tonnes were
up 25% compared to the same period last year as a result of increased customer
connections and Genesis Energy’s strategy to pursue greater LPG market share.
A continued trend from Q1 FY2017 of greater inflows into Genesis Energy
catchments along with a planned Unit 5 outage at Huntly in November 2016
resulted in the Company being able to prioritise renewable generation over
thermal generation. Hydro generation during Q2 FY2017 was 22% higher than the
same period last year whilst total thermal generation was down 37%. The wet
conditions and high national storage levels lead to a supressed average price
received for generation (GWAP) of $47.07/GWh, which was 31% lower than the
price received a year ago. Offsetting this is a 21% reduction in the cost of fuel
from $37.22/MWh to $29.36/MWh over the same period which lessens the
impact of lower prices on margins.
During Q2, Rankine units operated on gas for 77% of the time. Total coal fired
generation was 92% lower than Q2 FY2016, with the coal stockpile at 360
kilotonnes at 31 December 2016. Genesis Energy is also reporting Equipment
Availability and Forced Outage Factors this quarter which remain on target
including the planned outage at Unit 5 in November 2016.
Kupe’s Q2 FY2017 production was up on Q2 FY2016 due to the extended outage in
in Q2 FY2016 (despite a 12 day unplanned outage in November 2016). Genesis
Energy’s share of gas sales of 1.7PJ and oil production of 89kbbl were above the
same period last year by 26.4% and 9.7% respectively. Year to date LPG sales are
2.5kt behind that of a year ago due to an outage on one of the LPG production
machines.
During Q2 FY2016, there was one lost time injury during the quarter. The Total
Recordable Injury Frequency Rate (TRIFR) at 31 December 2016 was 0.26 against
0.88 at 31 December 2015. There were 808 full time equivalent employees at the
end of Q2 compared to 860 a year ago as a result of recent cost saving initiatives.
FY 2017 Q2 MARKET
AND OPERATIONAL
INFORMATION
Q2
This disclosure includes market and
operational information for
Genesis Energy Limited for the quarter
ending 31 December 2016 (Q2).
5%
Total LPG customer
connections up in Q2
versus Q1 FY2017
92%
Total coal fired
generation was down
compared with Q2
FY2016
218t
Retail LPG sales were up
on Q2 FY2016
31%
Average price received
for generation was
$21/GWh lower than Q2
FY2016

QUARTERLY
OPERATIONAL UPDATE

| SECOND QUARTER FY2017

2














20%
21%
22%
23%
24%
25%
26%
27%
28%
29%
30%
450,000
460,000
470,000
480,000
490,000
500,000
510,000
520,000
530,000
540,000
550,000
Q1 FY12
Q2
Q3
Q4
Q1 FY13
Q2
Q3
Q4
Q1 FY14
Q2
Q3
Q4
Q1 FY15
Q2
Q3
Q4
Q1 FY16
Q2
Q3
Q4
Q1 FY17
Q2
Market Share
Customers by connections
Customer Connections
Share of Total Market (RHS)
Source: Company data, Electricity Authority
Electricity Customer Connections and Market
30%
32%
34%
36%
38%
40%
42%
44%
46%
48%
50%
80,000
85,000
90,000
95,000
100,000
105,000
110,000
115,000
120,000
125,000
130,000
Q1 FY12
Q2
Q3
Q4
Q1 FY13
Q2
Q3
Q4
Q1 FY14
Q2
Q3
Q4
Q1 FY15
Q2
Q3
Q4
Q1 FY16
Q2
Q3
Q4
Q1 FY17
Q2
Market Share
Customers by connections
Customer Connections
Share of Total Market (RHS)
Source: Company data, Gas Industry Co
Natural Gas Customer Connections and Market
0
1000
2000
3000
4000
5000
6000
0
200
400
600
800
1000
1200
1400
1600
1800
Q1 FY12
Q2
Q3
Q4
Q1 FY13
Q2
Q3
Q4
Q1 FY14
Q2
Q3
Q4
Q1 FY15
Q2
Q3
Q4
Q1 FY16
Q2
Q3
Q4
Q1 FY17
Q2
GWh
GWh
Electricity Sales Volumes (GWh)
Quarterly Mass Market Sales Volumes
Quarterly TOU Sales Volumes
Rolling 12 months sales volumes (RHS)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
0.0
0.5
1.0
1.5
2.0
2.5
3.0
Q1 FY12
Q2
Q3
Q4
Q1 FY13
Q2
Q3
Q4
Q1 FY14
Q2
Q3
Q4
Q1 FY15
Q2
Q3
Q4
Q1 FY16
Q2
Q3
Q4
Q1 FY17
Q2
PJ
PJ
Retail Gas Sales Volumes (PJ)
Quarterly Mass Market Sales Volumes
Quarterly TOU Sales Volumes
Rolling 12 months sales volumes (RHS)
7.8%
8.0%
8.2%
8.4%
8.6%
8.8%
9.0%
9.2%
9.4%
3.3
3.4
3.5
3.6
3.7
3.8
3.9
4.0
4.1
4.2
4.3
201512
201601
201602
201603
201604
201605
201606
201607
201608
201609
201610
201611
201612
Market Share %
Kilotonnes
Est. Residential LPG 45kg Market Share by Volumes
Rolling 12m Sales
Rolling 12m Market Share (RHS)
Source: Genesis Energy/LPGA/MBIE
NEW DISCLOSURE
65%
66%
67%
68%
69%
70%
71%
72%
73%
74%
75%
65,000
67,000
69,000
71,000
73,000
75,000
77,000
79,000
81,000
83,000
85,000
Q1 FY12
Q2
Q3
Q4
Q1 FY13
Q2
Q3
Q4
Q1 FY14
Q2
Q3
Q4
Q1 FY15
Q2
Q3
Q4
Q1 FY16
Q2
Q3
Q4
Q1 FY17
Q2
% of total gas customer connections
Customers by connections
Dual Fuel Customer Connection Base
Dual Fuel Customer Connections
Dual Fuel % of Total Gas Customers (RHS)
Source: Company data
340
380
420
460
500
540
580
0
20
40
60
80
100
120
140
160
180
200
Q1 FY12
Q2Q3Q4
Q1 FY13
Q2Q3Q4
Q1 FY14
Q2Q3Q4
Q1 FY15
Q2Q3Q4
Q1 FY16
Q2Q3Q4
Q1 FY17
Q2
thousand of barrelsthousand of barrels
Kupe Oil Production Volumes (kbbl)
Quarterly Production Volumes
Rolling 12 months production volumes (RHS)
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
0.0
0.5
1.0
1.5
2.0
2.5
Q1 FY12
Q2Q3Q4
Q1 FY13
Q2Q3Q4
Q1 FY14
Q2Q3Q4
Q1 FY15
Q2Q3Q4
Q1 FY16
Q2Q3Q4
Q1 FY17
Q2
PJPJ
Kupe Gas Sales Volumes (PJ)
Quarterly Sales VolumesRolling 12 months sales volumes (RHS)

| SECOND QUARTER FY2017

3











10%
12%
14%
16%
18%
20%
22%
24%
26%
Jun-12
Aug-12
Oct-12
Dec-12
Feb-13
Apr-13
Jun-13
Aug-13
Oct-13
Dec-13
Feb-14
Apr-14
Jun-14
Aug-14
Oct-14
Dec-14
Feb-15
Apr-15
Jun-15
Aug-15
Oct-15
Dec-15
Feb-16
Apr-16
Jun-16
Aug-16
Oct-16
Dec-16
% annualised
Genesis Energy vs. Industry Electricity Customer Connection Switching
Genesis Energy Monthly Switching Rate
NZ Electricity Market Monthly Switching Rate
Genesis Energy 12 Month Rolling Switching Rate
Industry rolling 12m
Source: Genesis Energy,
Electricity Authority
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
0
100
200
300
400
500
600
700
Jun-10
Sep-10
Dec-10
Mar-11
Jun-11
Sep-11
Dec-11
Mar-12
Jun-12
Sep-12
Dec-12
Mar-13
Jun-13
Sep-13
Dec-13
Mar-14
Jun-14
Sep-14
Dec-14
Mar-15
Jun-15
Sep-15
Dec-15
Mar-16
Jun-16
Sep-16
Dec-16
Electricity
-
GWh
Electricity
-
GWh
Genesis Energy Electricity Sales Volumes
Total MMTOU ContractTOU SpotTOU HedgedRolling 12m Total Sales Volumes (RHS)
Source: Genesis Energy

| SECOND QUARTER FY2017

4















$74.23
$76.66
$78.05
$71.49
$77.88
$79.59
$67.23
$78.15
$80.38
$58.23
$73.34
$77.86
0
10
20
30
40
50
60
70
80
90
FY17
FY18
FY19
$/MWh
Otahuhu ASX Futures Settlement Price
As at 31/03/2016
As at 30/06/2016
As at 30/09/2016
As at 19/12/2016
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
Q2 2017Q2 2016Q2 YTD 2017Q2 YTD 2016
GWh
Genesis Energy Generation Volumes Q2 2017
Hau Nui Wind Farm
Tekapo A and B power stations
Waikaremoana Power Scheme
Tongariro Power Scheme
Huntly Unit 6
Huntly Unit 5
Huntly Units 1 to 4 Gas
Huntly Units 1 to 4 Coal

| SECOND QUARTER FY2017

5





















24
300
55
454
82
72
131
128
0
100
200
300
400
500
600
700
Q2 2017
Q2 2016
Q2 YTD 2017
Q2 YTD 2016
GWh
Rankine Unit Generation Output
Coal
Gas
NEW DISCLOSURE
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Jul-14
Aug-14
Sep-14
Oct-14
Nov-14
Dec-14
Jan-15
Feb-15
Mar-15
Apr-15
May-15
Jun-15
Jul-15
Aug-15
Sep-15
Oct-15
Nov-15
Dec-15
Jan-16
Feb-16
Mar-16
Apr-16
May-16
Jun-16
Jul-16
Aug-16
Sep-16
Oct-16
Nov-16
Dec-16
Forced Outage Factor (FOF) %
Equipment Availability Factor (EAF) %
Plant Performance
Monthly Equipment Availability Factor
Monthly Forced Outage Factor
Equipment
Availability Factor (EAF)
-
the percentage of time a power station is available to generate electricity.
Forced Outage Factor (FOF)
-
the percentage of time a power station is unavailable to generate electricity due to unplanned fail
ure or defect.
NEW DISCLOSURE

| SECOND QUARTER FY2017

2








0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
$-
$10
$20
$30
$40
$50
$60
$70
$80
1-Oct
6-Oct
11-Oct
16-Oct
21-Oct
26-Oct
31-Oct
5-Nov
10-Nov
15-Nov
20-Nov
25-Nov
30-Nov
5-Dec
10-Dec
15-Dec
20-Dec
25-Dec
30-Dec
Lake Storage (GWh)
Wholesale Price ($/MWh)
Daily Average Wholesale Reference Point Prices
and National Hydro Storage
-
Q2 FY2017
Benmore (BEN2201)
Otahuhu (OTA2201)
Storage Long Run Average (RHS)
FY2017 Storage
Source: COMIT/Genesis Energy
0
100
200
300
400
500
600
700
01-Oct
05-Oct
09-Oct
13-Oct
17-Oct
21-Oct
25-Oct
29-Oct
02-Nov
06-Nov
10-Nov
14-Nov
18-Nov
22-Nov
26-Nov
30-Nov
04-Dec
08-Dec
12-Dec
16-Dec
20-Dec
24-Dec
28-Dec
01-Jan
GWh
Tekapo Storage vs Long Run Average Q2 FY2017
Tekapo Storage
Long Run Average Storage
Source: COMIT
0
20
40
60
80
100
120
140
01-Oct05-Oct09-Oct13-Oct17-Oct21-Oct25-Oct29-Oct
02-Nov06-Nov10-Nov14-Nov18-Nov22-Nov26-Nov30-Nov
04-Dec08-Dec12-Dec16-Dec20-Dec24-Dec28-Dec
01-Jan
GWh
Waikaremoana Storage vs Long Run Average Q2 FY2017
Waikaremoana StorageLong Run Average Storage
Source: COMIT

| SECOND QUARTER FY2017

3
APPENDIX
OPERATIONAL INFORMATION

Operational Information*FY2017FY2016% ChangeChangeFY2017FY2016% ChangeChange
Market Information
Customer-focus
Electricity Market Share (%)
1
25.1%25.8%-2.8%-0.7%
Gas Market Share (%)
1
38.7%39.8%-2.9%-1.2%
Customer Experience
Customer-focus
Customer Satisfaction (%)
2
96%95%1.1%1%
Total Advanced Meters Installed To Date (#)393,857368,5006.9%25,357
Customer Numbers
Total Customer Connections (#)
3
645,365654,334-1.4%-8,969
Total Customers by Product:
Electricity Customer Connections (#)
4
535,438543,997-1.6%-8,559
Electricity Customer Connections Excluding Vacants (#)
4
514,155522,586-1.6%-8,431
Gas Customer Connections (#)
4
109,927110,337-0.4%-410
Gas Customer Connections Excluding Vacants (#)
4
106,388106,809-0.4%-421
LPG Customer Connections (#)
5
17,51314,32622.2%3,187
Total Electricity Customers by Location:
North Island Electricity Customer Connections (#)
4
428,010434,485-1.5%-6,475
South Island Electricity Customer Connections (#)
4
86,14588,101-2.2%-1,956
Customer Volumes and Price
Volume Weighted Average Electricity Selling Price Mass Market ($/MWh)
6
$243.66$239.441.8%$4.22$239.13$234.951.8%$4.18
Volume Weighted Average Electricity Selling Price TOU ($/MWh)
7
$104.67$99.864.8%$4.81$117.12$111.385.1%$5.73
Mass Market Electricity Sales (GWh)9791,011-3.2%-322,3232,394-3.0%-71
TOU Electricity Sales (GWh)291302-3.6%-11593621-4.5%-28
Total Electricity Sales - Retail (GWh)1,2701,313-3.3%-432,9163,015-3.3%-99
Electricity Sales - Wholesale (GWh)4003951.3%595885711.8%101
Volume Weighted Average Gas Selling Price ($/GJ)
6
$29.54$28.852.4%$0.69$25.43$24.942.0%$0.50
Mass Market Gas Sales (PJ)0.90.96.2%0.12.52.6-1.3%0
TOU Gas Sales (PJ)0.80.8-5.7%0.01.81.74.3%0
Total Retail Gas Sales (PJ)1.71.70.4%0.04.34.20.9%0.0
Retail LPG Sales (tonnes)1,10188324.6%2182,5702,20216.7%368
Electricity Purchases - Retail (GWh)1,3011,408-7.6%-1073,0643,186-3.8%-122
Electricity Purchases - Wholesale (GWh)29725019.1%4873261818.5%114
Retail Gas Purchases (PJ)1.7 1.7 0.5%0.04.4 4.3 1.5%0.1
Average Retail Electricity Purchase Price - LWAP ($/MWh)
8
$47.01$66.72-29.5%($19.72)$53.43$61.90-13.7%($8.47)
LWAP/GWAP Ratio (%)100%98%2.3%2.3%100%100%-0.1%-0.1%
Generation
Gas (GWh)627724-13.4%-971,4321,476-3.0%-44
Coal (GWh)
9
23301-92.4%-27853458-88.4%-404
Total Thermal (GWh)6501,025-36.6%-3751,4851,933-23.2%-448
Hydro (GWh)74961521.7%1341,6131,43112.8%182
Wind (GWh)77-2.8%-0.21213-12.4%-1.6
Total Renewable (GWh)75662221.4%1331,6251,44412.5%181
Total Generation (GWh)1,4061,648-14.7%-241.93,1103,377-7.9%-267.3
Average Price Received for Generation - GWAP ($/MWh)
8
$47.07$68.35-31.1%($21.28)$53.36$61.78-13.6%($8.41)
Generation Emissions (ktCO
2
)
291602-51.8%-311.86601,071-38.3%-410.3
Generation Carbon Intensity (tCO
2
/GWh)207366-43.5%-158.9212317-33.0%-104.7
Total Recordable Injury Frequency Rate
11
0.26 0.88 -70.5%-0.6
Fuel
Gas Purchases (PJ)10.510.5-0.3%0.023.524.3-3.3%-0.8
Coal Purchases (PJ)0.00.7-100.0%-0.7-0.43.0-112.0%-3.3
Wholesale Gas Sales (PJ)3.83.217.7%0.68.08.7-8.6%-0.7
Wholesale Coal Sales (PJ)0.20.2-22.5%-0.10.40.5-25.9%-0.1
Gas Used In Internal Generation (PJ)5.05.6-10.9%-0.6111.211.3-1.2%-0.1
Coal Used In Internal Generation (PJ)
10
0.33.3-91.2%-3.00.75.1-85.6%-4.4
Weighted Average Fuel Cost ($/MWh)
12
$29.36$37.22-21.1%($7.86)$30.04$34.40-12.7%($4.36)
Coal Stockpile - closing balance (kilotonnes)360.6600.4-39.9%-240
Genesis Energy Share
Gas Sales (PJ)1.71.326.4%0.43.83.410.8%0.4
Oil Production (kbbl)88.780.99.7%7.8195.8207.3-5.6%-12
Oil Sales (kbbl)72.456.627.8%15.7146.8158.6-7.4%-12
Average Brent Crude Oil (USD/bbl)49.543.713.2%5.847.747.01.4%0.7
LPG Sales (kilotonnes)5.95.74.3%0.211.514.1-18.0%-2.5
4
Electricity and gas customers are defined by number of connections (ICP).
5
LPG connections are defined by number of customers
11
Rolling 12 month TRIFR per 200,000 hours worked
12
NEW DISCLOSURE - Total fuel burnt divided by total generation
Second Quarter (October to December)Year to Date
10
Results have been revised to reflect changes in coal kilotonnes to PJ conversion rate and volume methodology
6
Average selling price for mass market customers including lines/transmission and distribution and after prompt payment discount
9
Coal generation is calculated by applying coal burn to monthly average heat rates
8
Excludes settlements from electricity derivatives.
Notes:
Kupe Oil and Gas
Energy Management
7
Average selling price for TOU customers including lines/transmission and distribution
1
December 2015 and 2016 market shares based on published customer records from the Electricity Authority and Gas
Industry Company
2
Based on the survey question: "Overall, how satisfied are you with the customer service you have received from
Genesis Energy where 1 is very dissatisfied and 10 is very satisfied?". Survey started in October 2013
3
Based on Genesis Energy customer records. Includes vacant accounts. Excludes LPG customers. Electricity and gas
customers are defined by number of connections.