FY20 Interim Results Announcement
MARKET RELEASE
Date: 21 February 2020
NZX: GNE / ASX: GNE
Genesis delivers earnings of $167 million and a 8.525 cps interim dividend
Half Year-ended
December 2019
Change year on year
EBITDAF
1
$167 million Down $30 million on HY19 of $197.5 million
Net Profit $9 million Down $40 million on HY19 of $49 million
Underlying Earnings
2
$16 million Down $26 million on HY19 of $42 million
Earnings Per Share 0.90 cents Down 4.01 cps from 4.91 cps
Underlying Earnings Per Share 1.53 cents Down 2.61 cps from 4.14 cps
Final Dividend Per Share 8.525 cents Up 0.9% from HY19 of 8.45 cents
Free Cash Flow
3
$94 million Down 17% on HY19 of $113 million
A strong retail performance offset by challenging wholesale market conditions due to lower hydro generation
and gas shortages
Genesis Energy (GNE) today announced that it delivered EBITDAF for the first half of $167 million, down
$30 million on the pcp. Net Profit decreased $40 million to $9 million, with underlying earnings decreasing $26
million to $16 million. An interim dividend of 8.525 cps has been declared.
“The strong retail segment performance, which saw the growth of new products and digital services, was offset
by higher fuel costs and lower hydro generation in the wholesale segment,” said Marc England, CEO.
The retail segment continued to enhance the value of its portfolio. Dual-fuel customers increased by 5% and
total electricity sales volume rose by 2.8% in the second quarter. Total LPG sales volume rose by 21.1% for the
year to date.
“Pleasingly, the cost of serving our customers has continued to drop, down 3.5% in quarter two, reinforcing our
digital strategy’s purpose to ‘put control in our customers hands’. Digital interactions now account for over 65%
of all customer engagements. EnergyIQ, our digital engagement tool, now has 175,000 unique users, and the
For Dairy product grew agribusiness connections by 36%. Continued focus on customer service excellence saw
net customer churn drop for the third consecutive year, and is now at just 15.8%.”
Conversely, Genesis’ wholesale segment performance was dampened by higher fuel costs, constrained national
gas supply, and lower hydro generation, 15% below the prior year. Kupe also had a planned statutory 30-day
outage, which impacted its contracted gas supplies. The consequence of this was increased thermal generation
at elevated fuel costs, lowering the overall wholesale result.
Future-gen strategy progressing
“The Genesis Future-gen programme continues to identify multiple renewable opportunities to transition away
from baseload thermal generation and deliver on our commitment to no longer use coal during a normal
hydrological year by 2025. This will ensure the continued delivery of reliable and affordable electricity, key to
enabling the decarbonisation and electrification of other industry sectors.”
Construction has now begun on the new 450 GWh per annum Waipipi Windfarm in Taranaki, through the Tilt
Renewables partnership. It will be operational in 2021 and Genesis will buy its entire output of zero-emissions,
renewable electricity.
1
Earnings before net finance expenses, income tax, depreciation, depletion, amortisation, impairment, Fair Value changes and other
gains and losses. Refer to consolidated comprehensive income statement in the 2020 interim report for a reconciliation from EBITDAF to
Net Profit after tax.
2
Net Profit adjusted for non cash fair value adjustments and business acquisition costs.
3
Free Cash Flow is EBITDAF, less finance expense, cash taxes paid and stay in business capital expenditure.
Genesis is also in advanced discussions on terms for a 300 MW solar farm in the upper North Island to generate
a further 550 GWh per annum of electricity. Combined with Waipipi, these two projects should collectively
enable a reduction of 550,000 tonnes of carbon emissions per annum.
Interim dividend and dividend reinvestment plan
The Board has declared an interim dividend of 8.525 cents per share, an increase of 0.9% which has a record
date of 18 March 2020 and will be paid on 1 April 2020.
Genesis will continue its dividend reinvestment plan. Shareholders will have until 19 March 2020 to opt into the
dividend reinvestment plan.
FY2020 guidance
Genesis expects an improved performance in the second half of FY20 with full Kupe Production and improved
trading opportunities resulting from planned outages elsewhere in the sector. Subject to normal hydro inflows
and expected market conditions, EBITDAF guidance for the full year ended 30 June 2020 has been revised to a
range of $360 million to $370 million. Capital expenditure guidance for FY20 remains unchanged at up to $100
million.
Further information on the company’s operations and financing can be found in the investor presentation of the
full year results at nzx.com/markets/NZSX/securities/GNE and www.genesisenergy.co.nz/presentations.
ENDS
For media enquiries, please contact:
Allan Swann
Communications Manager
M: 027 211 4874
For investor relations enquiries, please contact:
Cameron Parker
Investor Relations Manager
M: 021 241 3150
About Genesis Energy
Genesis Energy (NZX: GNE, ASX: GNE) is a diversified New Zealand energy company. Genesis sells electricity,
reticulated natural gas and LPG through its retail brands of Genesis Energy and Energy Online and is New
Zealand’s largest energy retailer with approximately 500,000 customers. The Company generates electricity
from a diverse portfolio of thermal and renewable generation assets located in different parts of the country.
Genesis also has a 46% interest in the Kupe Joint Venture, which owns the Kupe Oil and Gas Field offshore of
Taranaki, New Zealand. Genesis had revenue of $NZ2.7 billion during the 12 months ended 30 June 2019. More
information can be found at www.genesisenergy.co.nz
---
Half Year 2020
Results Presentation
21 February 2020
G E N E S I S E N E R G Y L I M I T E D
Marc England –CHIEF EXECUTIVE OFFICER
Chris Jewell –CHIEF FINANCIAL OFFICER
AGENDA
Genesis Energy Limited 1H FY20 Result Presentation 2.
1
Key Highlights
2
Financial Performance
3
Operational Update
4
Outlook
1. Key Highlights
➢Total generation of 3,454 GWh received an average price of $117/MWh, down 20% on HY19
➢Hydro generation was down 14.7% to 1,452 GWh, and average thermal fuel costs increased 19%
➢Portfolio management activities have positively impacted 1H FY20 result
➢2H FY20 will include full Kupe production and lower thermal fuel costs
Genesis Energy Limited 1H FY19 Result Presentation 4.
Results at a glance
Genesis Energy Limited 1H FY19 Result Presentation 4.
NPAT
EBITDAF
$
m
$
m
Gross
yield of
Interim dividend
cps
.
%
.
%
Net Debt
down
1
Earnings before net finance expenses, income tax, depreciation, depletion, amortisation, impairment, Fair Value changes and other gains and losses. Refer to consolidated comprehensive income statement in the
2020 interim report for a reconciliation from EBITDAF to Net Profit after tax.
Note: The prior comparable period (pcp) is defined as half year FY19, six month period ending Dec 2018, unless an alternative comparison is stated.
Genesis Energy Limited 1H FY20 Result Presentation 4.
Operating
expenses flat
.
m
$
1
Retail
Kupe
Wholesale
➢Retail netbacks up across all fuels; Electricity up 4.1%, Gas up 10.3%, LPG up 17.9%
➢Gross customer churn reduced by 2.5 ppt and net churn by 1.2 ppt
➢Customers purchasing more than 1 fuel grew by 5.0%, to over 119k
➢Cost to serve customers has fallen a further 3.5% on prior half year
➢Will pass through an estimated $50m p.a. in network cost reductions to customers from 1 April
➢Gas field production down 14%, to 4.9 PJ, due to a planned statutory 30-day outage in November
➢Successful completion of Kupe’s statutory outage, ahead of time and to budget, with no plant or
health & safety issues
➢Well perforation project to be completed in February 2020 and if successful could lift production
by up to 5 PJ prior to mid-2021
As at 18 February 2019
2. Financial Performance
167
9
16
123
162
94
36
8.525cps
1,239
198
49
42
123
176
113
37
8.45cps
1,251
0
50
100
150
200
250
300
350
400
EBITDAFNPATUnderlying
Earnings
Controllable
Operating
Expenses
Operating
Cashflow
Free Cash FlowCapital
Expenditure
Interim DividendNet Debt
$ MILLIONS
HY20HY19
3
2
-16%-82%-62%0%-3%-17%+ 0.9%-1%-8%
KEY FINANCIAL COMPARISONS
1
HY20 financialsummary
1
Due to the adoption of NZ IFRS 16 and changes to the segment reporting structure as outlined in the notes to the interim financial statements, 1H FY19 and FY19 comparable financials have been restated in this presentation. As a
result prior comparable period metrics may also have changed.
2
Controllable operating expenses refer to Employee Benefits plus Other Operating Expenses.
3
Free Cash Flow represents EBITDAF less cash tax paid, net interest costs and stay in business capital expenditure.
4
Capital Expenditure amounts differ from amounts stated in the financial statements due to exclusion of capital expenditure relating to Huntly U5’s Long Term Maintenance contract (LTMA).
5
Net Debt and interim dividends are shown on a separate scale to other financial comparisons. Net Debt prior period comparisonisagainst the period ending 30 June 2019.
Genesis Energy Limited 1H FY20 Result Presentation 6.
4
5
DIVIDEND (CPS) & PAYOUT HISTORY
8.20 8.20
8.30
8.45
8.525
72%
87%
64%
76%
93%
-15%
5%
25%
45%
65%
85%
105%
125%
145%
5.50
6.00
6.50
7.00
7.50
8.00
8.50
9.00
HY16HY17HY18HY19HY20
Dividends (cps)% of Free Cash Flow
Dividends
—Interim dividend of 8.525 cps declared (up 0.9%), with 80% imputation, representing a 6.9% gross yield
1
Genesis Energy Limited 1H FY20 Result Presentation 7.
1
Gross yield based on the rolling 12 month dividend cps and closing share price of $3.24 as at 18 February 2019.
2
Free cash flow represents EBITDAF less cash tax paid, net interest costs and stay in business capital expenditure.
•An Interim dividend of 8.525 cps, 80% imputed, will
have a record date of 18 March 2020, payable to
shareholders on 1 April 2020.
•Supplementary dividend of 1.2035 cps
payment to non-resident shareholders.
•The Dividend Reinvestment Plan (DRP) continues to
be offered at 2.5% discount, with an opt-in cut off
date as at 19 March 2020. DRP pricing will be
notified to shareholders on 24 March 2020.
2
198
167
30
10
0
9
HY19 EBITDAF Retail Wholesale Kupe CorporateHY20 EBITDAF
FavourableUnfavourable
HY20 vs HY19 EBITDAF
$ MILLIONS
—Strong Retail result offset by reduced gas availability, higher thermal fuel costs, reduced hydro generation
and a planned Kupe outage
HY20 EBITDAF
Genesis Energy Limited 1H FY20 Result Presentation 8.
176
156
198
198
167
HY16HY17HY18HY19HY20
EBITDAF
$ MILLIONS
1
Due to the adoption of NZIFRS16 and changes to the segment reporting structure as outlined in the notes to the interim financial statements, 1H FY19 comparable financials have been restated in this presentation (+$2.0m). No other prior periods have been restated.
1
Segment EBITDAF
KUPE EBITDAF HY19 TO HY20
RETAIL EBITDAF HY19 TO HY20
WHOLESALE EBITDAF HY19 TO HY20
FavourableUnfavourable
Genesis Energy Limited 1H FY20 Result Presentation 9.
•Retailsaw improved margins in residential, achieved from cost and
volume/value mix management. Continued growth in LPG was
offset by softer business margins due to escalating wholesale prices
in electricity, gas and LPG.
•Wholesale performance was impacted by a mix of lower hydro
generation, which was replaced by thermal generation with higher
per GJ fuel costs compared to 1H FY19.
•Kupe lower production due to a planned statutory 30-day outage in
November 2019.
•Corporate remained stable compared to 1H FY19.
53
43
9
2
2
3
HY19 EBITDAFLower Production Higher Gas & LPG
prices
Emissions Operating &
Other Expenses
HY20 EBITDAF
FavourableUnfavourableFavourableUnfavourable
109
79
32
19
21
HY19 EBITDAFTrading marginHydro volumeThermal fuel priceHY20 EBITDAF
55
64
4
10
3
HY19 EBITDAFResidentialBusinessLPGHY20 EBITDAF
49
9
30
13
10
3
16
HY19 NPATChange in
EBITDAF
Change in
Income Tax
Fair Value
Adjustments
Depreciation
(DDA)
Other loss &
other
movements
HY20 NPAT
UNDERLYING EARNINGS
NPAT & underlying earnings
—decrease in NPAT and Underlying Earnings
FavourableUnfavourable
$ MILLIONS
Genesis Energy Limited 1H FY20 Result Presentation 10.
NPAT
$ MILLIONS
FavourableUnfavourable
•Unfavourablemovement in Fair Value adjustments of
$13m driven by higher future electricity prices,
reducing the value ofderivatives.
•Unfavourable movementin Depreciation (DDA) due
toJune 2019 increase in value of generation assets
and update ofuseful lives ofgeneration assets,
including one off adjustments for soon to be replaced
assets. This increase in DDA is partly offset by a
decrease in oil and gas depletion from the 30-day
planned outage at Kupe.
•Change in income tax is due to a combination of
lower earnings, and the unfavourable Fair Value
adjustments and increase in DDA noted above.
42
16
30
10
3
11
HY19 Underlying
Earnings
Change in
EBITDAF
Net Finance CostDepreciation
(DDA)
Adjusted Tax
Expense & other
movements
HY20 Underlying
Earnings
115
114
129
123123
HY16HY17HY18HY19HY20
$ MILLIONS
CONTROLLABLE OPERATING EXPENSES
1
Controllable operating expenses
—Operating expenses held flat with continued success on lowering our Retail cost to serve
Genesis Energy Limited 1H FY20 Result Presentation 11.
1
Controllable operating expenses refer to Employee Benefits plus Other Operating Expenses. All comparable periods have been adjusted to reflect the new segment note structure.
2
In FY20 Genesis updated its segment reporting and this included realigning the Technology & Digital function previously in Corporate to the Retail Segment.
•Customer acquisition costs down $1m.
•Wholesale staff costs up $2m due to lower labour capitalisation in
1H FY20. 1H FY19 included one-off labour intensive projects
capitalised against generation assets.
•Kupe operating expenses up $1m due to planned outage works.
•Contractors and software costs down $1m.
•Retail Cost to Serve now at $139/ICP, down a $3 on June 2019.
38%
12%
25%
8%
16%
1H FY20 CONTROLLABLE OPERATING EXPENSES SPLIT
2
Retail
Technology & Digital
Wholesale
Kupe
Corporate
LPG distribution acquisition & increased
share in Kupe JV
Capital expenditure
—Total capital expenditure at HY20 was $36m, no change to full year guidance of up to $100m
CAPITAL EXPENDITURE
1
•Stay in business capex (SIB) was $25m, significant
maintenance projects included:
-Kupe planned statutory outage and other major
capex ($6.4m), Tekapo turbine overhaul ($1.2m),
Waikaremoanalocal service upgrade ($1.3m).
-One-off Tekapo intake gate installation project
($3.5m).
•Growth capex includes:
₋Development of Retail products and systems
($2.5m) and Kupe Inlet Compression project
($4.9m).
•No change to full year guidance of capital expenditure up
to $100m. Key projects include Tekapo Intake Gate
Installation, Kupe Inlet Compression Project, Kupe Well
Perforation project, Tekapo Turbine Overhaul and
Runner Replacement, and LPG Operations Investment
FY16FY17FY18FY19FY20 YTD
WholesaleRetailLPG OperationsKupeTechnology & DigitalCorporate
$ MILLIONS
40
47
80
89
36
Forecast full year capex
Genesis Energy Limited 1H FY20 Result Presentation 12.
1
Capital expenditure excludes M&A activities.
2
FY19 capital expenditure of $89m and HY20 of $36m differ from the financial statements due to the exclusion of the capital associated with the Huntly U5’s Long Term Maintenance contract (LTMA) (HY20: $11.8m). Capital items received as part of the LTMA are
recognised upfront and paid off over the life of the agreement (8 years), the cash outflow ($2.5m) relating to this has been recorded as Stay in Business capex for the purposes of the Free Cash Flow Calculation.
2
2
6.5%
5.7%
5.8%
5.8%
5.5%
78%
77%
87%
79%
76%
72%
61%
57%
44%
34%
28%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
4.5%
5.0%
5.5%
6.0%
6.5%
7.0%
7.5%
FY16FY17FY18FY19HY20FY20FY21FY22FY23FY24FY25
% of fixed rate funding
Cost of funds % p.a.
Average total cost of funds% of fixed rate funding
NET DEBT AND NET DEBT/EBITDAF RATIO
1
833
1,212
1,183
1,2511,239
2.6
3.3
3.0
3.0
3.0
0.0
1.0
2.0
3.0
4.0
5.0
0
200
400
600
800
1000
1200
FY16FY17FY18FY19HY20
Net debtNet debt/EBITDAFTarget debt ratio band (2.4 to 3.0)
Capital structure
—Net debt reduced by $12 million, Debt/EBITDAF ratio remains within target band
•Average interest rate of 5.5% in HY20, down from 5.8% for
FY19, due to lower fixed rate debt and lower floating rates.
•Genesis’ cost of funds will continue to fall as fixed rate debt
matures in a lower interest rate environment.
1
Standard and Poor’s make a number of adjustments to Net Debt and EBITDAF for the purpose of calculating credit metrics. The most significant of these is the 50% equity treatment attributed to the Capital Bonds. H1 FY20 calculation is based on actual debtat 31
st
December 2019 and the mid-point of the EBITDAF guidance range for FY20.
Genesis Energy Limited 1H FY20 Result Presentation 13.
•S&P reaffirmed BBB+ credit rating in December 2019.
•Dividend reinvestment plan (DRP) in place since the FY18 interim
dividend with 29% of holders currently participating, representing 22%
of all shares, and $78.9 million raised to date.
•Average tenure of debt of 11.4 years. $300 million of undrawn
facilities provides ample headroom to repay $70 million of wholesale
bonds that mature in June 2020.
FIXED INTEREST RATE PROFILE
3. Operational Update
96%
98%
100%
102%
104%
106%
108%
110%
112%
114%
Jan-19
Feb-19
Mar-19
Apr-19
May-19
Jun-19
Jul-19
Aug-19
Sep-19
Oct-19
Nov-19
Dec-19
Average Customer Life Value (Index)
128,000customers redeemed Power
Shout 6, 33% choose to this on Saturday
between 5-10pm
In November 131,000different
customers used Energy IQ, with the
most popular energy insight feature
being usage breakdown
Over the last 12 months customers
redeemed 2,323,475free hours of
power, driving a 1-2%reduction in
churn
>110,000home profiles now complete.
18% indicated low levels of insulation,
63% indicated they heat their hot water
with electricity.
Since its launch in November, 10,000
customers have accessed our tip centre
feature in Energy IQ
Since its launch in September, 35,000
customers have accessed the Eco
Tracker feature. 70%surveyed, plan to
take action
Data-driven and customer focused
Our customer loyalty and engagement strategy is delivering value
➢Gross customer churn continues to fall, down 2.5 ppt and net churn at record low levels
➢The value of Genesis’ customer book has increased 12.4% since January 2019
RESIDENTIAL CUSTOMER GROSS
1
CHURN DOWN 2.5 ppt, NET
CHURN DOWN 1.2 ppt (12 MONTH AVG)
Genesis Energy Limited 1H FY20 Result Presentation 15.
TOTALGENESIS RESIDENTIAL CUSTOMER LIFE VALUE INDEX
2
(CLV)
CLV up 12.4% in 12
months
1
Gross churn is defined as customers who instigated a trader switch or home move, whilst net churn is gross churn post home movesave and retentions (12 month average).
2
Total Genesis Customer Lifetime Value is the sum of each customer’s margin, discounted over its expected tenure.
20.5%
17.0%
15.8%
32.8%
29.0%
26.5%
10%
15%
20%
25%
30%
35%
0%
5%
10%
15%
20%
25%
30%
1H FY181H FY191H FY20
Net ChurnGross Chrun
$496
$482
$572
$850
$766
$700
$439
$524
$570
FY18FY19FY20 (f)
Fuel Cost ($/t)Cost to Deliver ($/t)Margin ($/t)
52%
44%
40%
30%
25%
14%
13%
14%
12%
10%
1%
3%
34%
43%
47%
58%
65%
0%10%20%30%40%50%60%70%80%90%100%
FY16
FY17
FY18
FY19
HY20
PhoneEmailWebChatDigital
Customer service excellence
AN INCREASINGLY DIGITAL AND AUTOMATED SERVICE OFFERING IS
LOWERING OUR COST TO SERVE:
➢Digital interactions now make up over two thirds of all interactions:
▪Assisted phone interactions down 5 ppt since June 2019
▪WebChatnow 3% of digital interactions
▪Booking and scheduling of a customer call online is live
➢At Home Agents channels facilitate a flexible call centre
➢A combination of the above has driven over $20 per ICP out of our Cost to
serve since FY16
DIGITAL INTERACTIONS UP 31 ppt SINCEFY16
Genesis Energy Limited 1H FY20 Result Presentation 16.
COST TO SERVE DOWN A FURTHER $3/ICP OVER PERIOD, DOWN 14% SINCE FY16
$161
$160
$151
$141
$139
$130
$135
$140
$145
$150
$155
$160
$165
FY16FY17FY18FY19HY20
Cost to Serve per ICP
Cost to serve down
14% since FY16
IMPROVED LPG COST TO DELIVER (CTD) IS DRIVING MARGIN GROWTH, CTD DOWN 18%
Optimising the Retail Segment for value
BUSINESS GAS SALES VOLUMES (TJ) & NETBACK ($/GJ)
RESIDENTIAL GAS SALES VOLUMES (TJ) & NETBACK ($/GJ)
BUSINESS ELECTRICITY SALES VOLUMES (GWh) & NETBACK ($/MWh)
RESIDENTIAL ELECTRICITY SALES VOLUMES (GWh) & NETBACK
1
($/MWh)
BUSINESS LPG SALES VOLUMES (t) & NETBACK ($/t)
RESIDENTIAL LPG SALES VOLUMES (t) & NETBACK ($/t)
Volume/value
mix
Volume/value
mix
Volume/value
mix
Volume/value
mix
Volume/value
mix
Volume/value
mix
2
1
Netback is defined as Retail EBITDAF by fuel type plus respective fuel purchase cost divided by total fuel sales volumes, stated in native fuel units and excluding Technology & Digital costs (1H FY20 $15.0m) and corporate allocation.
2
HY19 and HY18 LPG Netbacks have been normalised for changes in cost allocation between LPG customer types.
Genesis Energy Limited 1H FY20 Result Presentation 17.
1,644
1,619
1,600
$110
$115
$123
$100.00
$120.00
$140.00
1,000
1,200
1,400
1,600
1,800
HY18HY19HY20
Sales Volume (GWh)
Sales VolumeNetback
1,364
1,520
1,572
$87
$92
$93
$80.00
$85.00
$90.00
$95.00
$100.00
1,000
1,200
1,400
1,600
1,800
HY18HY19HY20
Sales Volume (GWh)
Sales VolumeNetback
1,646
1,697
1,625
$10.3
$10.3
$12.3
$8.00
$9.00
$10.00
$11.00
$12.00
$13.00
$14.00
$15.00
$16.00
$17.00
$18.00
1,000
1,200
1,400
1,600
1,800
HY18HY19HY20
Sales Volume (TJ)
Sales VolumeNetback
2,333
2,822
2,851
$7.9
$7.8
$8.0
$7.00
$7.50
$8.00
$8.50
$9.00
1,800
2,100
2,400
2,700
3,000
HY18HY19HY20
Sales Volume (TJ)
Sales VolumeNetback
10,780
10,907
13,964
$649
$720
$793
400.0
600.0
800.0
1000.0
1200.0
7,000
9,000
11,000
13,000
15,000
HY18HY19HY20
Sales Volume (T)
Sales VolumeNetback
7,501
8,473
9,511
$973
$982
$1,261
550.0
650.0
750.0
850.0
950.0
1050.0
1150.0
1250.0
1350.0
4,000
6,000
8,000
10,000
HY18HY19HY20
Sales Volume (T)
Sales VolumeNetback
1,697
1,359
1,713
1,121
1,465
1,795
1,597
1,079
1,504
1,324
378
279
603
802
665
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
1H FY182H FY181H FY192H FY191H FY20
Renewable GenerationThermal Generation (Gas)Thermal Generation (Coal)
Hydro conditions and thermal fuel costs impact Wholesale Segment
LOW INFLOWS AND CONSERVATION FOR Q1 2020 IMPACT HYDRO GENERATION:
➢Total generation of 3,454 GWh, renewable generation down 15% to 1,465 GWh.
➢Inflows at 82% of average during the first four months of FY20, limited hydro
generation volumes to 1,452 GWh.
▪Period starting 30 June 2019 storage levels lower than average, Waikaremoanaat
11% of average and Tekapo at 87% of average.
▪Water was conserved at Waikaremoanain order to help manage HVDC and gas
market outages in 2H FY20.
▪The beginning 2H FY20 hydro storage was at 122% of average, up 44 ppt on the
prior year, following significant inflows in December 2019.
Genesis Energy Limited 1H FY20 Result Presentation 18.
Hydro generation
volume down 248 GWh
on HY19
THERMAL FUEL COST UP 19%, PORTFOLIO FUEL COST UP 38% TO $47/MWh:
➢The Weighted Average Fuel Cost for thermal plant was up 19% to $82/MWh.
➢Spot purchases of gas due to the planned statutory 30-day outage at Kupe and tight
supply conditions, has increased per GJ gas burn costs by 15% to $9.50/GJ.
➢The Weighted Average Coal Burn Cost for 1H FY20 was $7.1/GJ but is expected to
decline in 2H FY20.
RENEWABLE vs THERMAL GENERATION VOLUMES (GWh)
AVERAGE FUEL COSTS (EXCLUDING CARBON) AND RENEWABLE GENERATION
CONTRIBUTION TO GENERATION PORTFOLIO
$64
$70
$69
$78
$82
$61
$66
$67
$75
$81
$71
50%
42%
0%
10%
20%
30%
40%
50%
60%
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
1H FY182H FY181H FY192H FY191H FY202H FY20 (f)
Thermal Fuel Cost ($/MWh)
Weighted Average Coal Burn Cost ($/MWh)
Renewable Contribution to Total Generation (RHS, %)
-$10
$10
$30
$50
$70
$90
$110
$130
$150
$0
$5
$10
$15
$20
$25
$30
1H FY182H FY181H FY192H FY191H FY202H FY20 (f)
Realised Carbon Price ($/NZU)
Average Carbon Spot Price ($/NZU)
Average Otahuhu Spot Price ($/MWh, RHS)
6.1
5.7
5.7
6.2
4.9
1.7
1.5
1.4
1.4
1.1
1.1
1.2
1.2
1.4
1.1
0
1
2
3
4
5
6
7
8
9
10
1H FY182H FY181H FY192H FY191H FY202H FY20 (f)
Production in PJe
GasOilLPG
Fuel and carbon costs are key driversof market prices
Genesis Energy Limited 1H FY20 Result Presentation 19.
Kupe planned
statutory
30-day outage
KUPE PRODUCTION DOWN BUT WILL RECOVER IN 2H FY20:
➢Kupe’s planned statutory 30-day outage completed successfully.
➢Well perforation project approved and if successful is expected to lift
production in short to medium-term.
➢Broader market gas availability improves however uncertainty remains and
supply is expected to be tight in the short to medium-term.
▪Genesis’ integrated position at Kupe helps to manage gas market
exposure.
CARBON PRICES ARE EXPECTED TO FLOW THROUGH TO WHOLESALE PRICING:
➢Carbon prices continue to rise and contribute, in part, to market prices.
▪Genesis’ historical realised carbon price has been managed to a level below
the average market price.
➢The ASX future market is at elevated levels, and remains elevated through to
2023, driven by gas and coal prices and market supply constraints, carbon
prices and short-term HVDC outages.
▪Volatility has moderated in past six months, relative to 1H FY19.
GENESIS’ REALISED CARBON PRICE vs AVERAGE SPOT PRICES
KUPE PRODUCTION (GENESIS SHARE, PJe)
ASX
Genesis Energy Limited 1H FY20 Result Presentation 20.
Enabling a more sustainable future
To be
confirmed
$
Photos curtesy of Tilt Renewables, WaipipiWind Farm construction
Outlook and guidance
—Updated guidancefor FY20 EBITDAF is $360 to $370 million
$167
$193
$10
$16 -26
$203
1H FY20
EBITDAF
RetailWholesaleKupe2H FY20
EBITDAF
MinimumMaximum
Flat
1H FY20 vs 2H FY20 EBITDAF ($M)
•Genesis expects an improved performance in H2 FY20
relative to the first half.
•Improved thermal margins due to a lower average cost of
coal with higher priced coal used in first half
•One more month of Kupe production
•Hedges sold to cover large industry outages
•Guidance has been updated to reflect uncontrollable factors:
•Very low North Island inflows have persisted since January
•Significant early February South Island rain event has
softened spot prices
•FY20 EBITDAF guidance range is $360 to $370 million subject
to hydrological conditions, gas availability, any material
events, one-off expenses or other unforeseeable
circumstances
•FY20 capital expenditure guidance is unchanged at up to
$100 million
Genesis Energy Limited 1H FY20 Result Presentation 22.
Financial statements
1
Genesis Energy Limited 1H FY20 Result Presentation 24.
Balance SheetHY20FY19
Variance
($m)($m)
Cash and Cash Equivalents26.161.9
Other Current Assets374.6417.0
Non-Current Assets4,147.24,210.4
Total Assets4,547.94,689.3
(3.0%)
Total Borrowings1,306.71,355.0
Other Liabilities1,145.31,189.3
Total Equity2,095.92,145.0
(2.3%)
Adjusted Net Debt
1,239.4
1,251.4
(1.0%)
Gearing
31.4%31.9%
EBITDAF Interest Cover5.9x6.2x
Net Debt/EBITDAF3.0x3.0x
Cash Flow Summary
HY20HY19Variance
($m)($m)($m)
Net Operating Cash Flow161.7175.9
Net Investing Cash Flow(46.2)(36.7)
Net Financing Cash Flow(151.3)(150.5)
Net Increase (Decrease) in Cash(35.8)(11.3)(24.5)
1
Due to the adoption of NZ IFRS16 and changes to the segment reporting structure as outlined in the notes to the interim financial statements, H1 FY19 and FY19 comparable have been restated in this presentation. As a result prior comparable period metrics may also have changed.
2
Capital items received as part of the LTMA are recognised upfront and paid off over the life of the agreement (8 years), the cash outflow ($2.5m) relating to this has been recorded as Stay in Business capex for the purposes of the Free Cash Flow Calculation.
Income Statement
HY20HY19
Variance
($m)($m)
Revenue1,334.21,361.0(2.0%)
Total Operating Expenses(1,167.0)(1,163.5)+0.3%
EBITDAF167.2197.5(15.3%)
Depreciation, Depletion & Amortisation(109.9)(100.4)
Impairment of Non-Current Assets
(0.1)
2.6
Fair Value Change(4.8)8.1
Share in associates(0.4)-
Other Gains (Losses)(3.1)-
Earnings Before Interest & Tax48.9107.8(54.6%)
Interest(36.1)(38.8)
Tax(3.6)(19.6)
Net Profit After Tax9.249.4(81.4%)
Earnings Per Share (cps)0.94.9(81.6%)
Stay in Business Capital Expenditure27.229.5(7.8%)
Free Cash Flow94.1113.4(17.0%)
Dividends Per Share (cps)8.5258.45+0.9%
Dividends Declared as a % of FCF93%76%+17ppt
2
Debt InformationHY20
($m)
FY19
($m)
Variance
Total Debt$
1,306.71,355.0
Cash and Cash Equivalents$
26.1 61.9
Headline Net Debt$
1,280.61,293.1(1.0%)
USPPFX and FV Adjustments$
41.2 41.7
AdjustedNet Debt
1
$
1,239.41,251.4(1.0%)
Headline Gearing
38.4%39.3%-0.9 ppts
AdjustedGearing
37.6%38.5%-0.9 ppts
Covenant Gearing
31.4%31.9%-0.5 ppts
Net Debt/EBITDAF
2
3.0x 3.0x 0.0x
Interest Cover
5.9x 6.2x -0.3x
Average InterestRate
5.5%5.8%-0.3 ppt
Average Debt Tenure
11.4 yrs11.9 yrs-0.5 yrs
1
Standard and Poor’s make a number of adjustments to Net Debt and EBITDAF for the purpose of calculating credit metrics. The most significant of these is the 50% equity treatment attributed to the Capital Bonds. H1 FY20 calculation is based on actual debt at 31
st
December 2019 and the mid-point of the EBITDAF guidance range for FY20. Net debt has been adjusted for foreign currency translation and fair value movements related to USD denominated borrowings whichhave been fully hedged with cross currency swaps.
2
EBITDAF is based on the midpoint of the guidance range provided for FY20.
GENESIS ENERGY DEBT PROFILE
Debt information
Genesis Energy Limited 1H FY20 Result Presentation 25.
$0
$50
$100
$150
$200
$250
$300
$350
FY20
FY21
FY22
FY23
FY24
FY25
FY26
FY27
FY47
FY49
$m
Retailable Bonds
Wholesale Domes tic
Drawn Bank
Undrawn Bank
Cap ital B onds
USPP
Operational highlights
Genesis Energy Limited 1H FY20 Result Presentation 26.
Retail Key InformationHY20HY19Variance
EBITDAF ($ millions)64.055.1+16.2%
Electricity Netback ($/MWh)$108.20$103.98+4.1%
Gas Netback ($/GJ)$9.6$8.7+10.3%
LPG Netback ($/t)$983$834+17.9%
Customers with > 1 Fuel119,227113,549+5.0%
Electricity Only Customers320,731335,332(4.4%)
Gas Only Customers16,02217,440(8.1%)
LPG Only Customers33,96934,770(2.3%)
Total Customers489,949501,091(2.2%)
Total Electricity, Gas and LPG ICP’s674,357674,3870.0%
Volume Weighted Average Electricity Selling Price
–Resi ($/MWh)
$258.40$253.42+2.0%
Volume Weighted Average Electricity Selling Price
–SME ($/MWh)
$219.78$221.43(0.7%)
Volume Weighted Average Electricity Selling Price
–C&I ($/MWh)
$134.06$127.55+5.1%
Volume Weighted Average Gas Selling Price ($/GJ)
-MM
$24.69$23.89+3.3%
Volume Weighted Average LPG Selling Price
($/tonne)
$1,783.52$1,763.38+1.1%
Retail Electricity Sales (GWh)3,1723,139+1.1%
Retail Gas Sales (PJ)4.54.50.0%
Retail LPG Sales (tonnes)23,47519,380+21.1%
Wholesale Key InformationHY20HY19Variance
EBITDAF ($ millions)79.0108.8(27.4%)
Renewable Generation (GWh)1,465 1,713(14.5%)
Thermal Generation (GWh)1,989 1,682+18.3%
Total Generation (GWh)3,454 3,395+1.7%
Equipment Availability Factor (EAF)
90.7%91.5%(0.8 ppt)
GWAP ($/MWh)$117.00$146.68(20.2%)
LWAP/GWAP Ratio99%97%+2 ppt
Weighted Average Fuel Cost -Portfolio ($/MWh)$46.95$33.99+38.1%
Coal/Gas Mix (Rankines only)95/585/15
Kupe Key InformationHY20HY19Variance
EBITDAF ($m)43.052.5(18.1%)
Gas Production (PJ)4.95.7(14.0%)
Gas Sales (PJ)4.95.5(10.9%)
Oil Production (kbbl)177235(24.7%)
Oil Sales (kbbl)138168(17.9%)
LPG Production (kt)21.423.6(9.3%)
LPG Sales (kt)21.923.7(7.6%)
Average Brent Crude Oil (USD/bbl)$62.60$71.52(12.5%)
Realised Oil Price (NZD/bbl)$85.14$91.12(6.6%)
Health & Safety InformationHY20HY19Variance
Total Recordable Injury Frequency Rate1.231.11+0.12
Genesis Energy Limited 1H FY20 Result Presentation 27.
CUSTOMER
Brand Net Promoter Score (%)Based on survey question "How likely would you be to recommend Genesis Energy/Energy Online to your friends or family?"
Interaction Net Promoter Score (%)Based on survey question "Based on your recent Interaction With GE/EOL, how likely would you be to recommend GE/EOL to your Friends/Family?"
CustomersElectricity and gas customers are defined by single customer view, regardless of number of connections (ICP's)
Single Customer ViewRepresents unique customers which may have multiple ICP's
ICPInstallation Connection Point, a connection point that is both occupied and has not been disconnected (Active-Occupied)
LPG Customer ConnectionsDefined as number of customers
Gross Customer ChurnDefined as customers instigating a trader switch or home move
Net Customer ChurnDefined as Gross Churn post home move saves, retention and acquisition activity
Resi, SME, C&IResidential, small and medium enterprises and commercial & industrial customers
B2BBusiness to Business, including both SME and C&I
Volume Weighted Average Electricity Selling Price - $/MWhAverage selling price for customers including lines/transmission and distribution and after prompt payment discount
Volume Weighted Average Gas Selling Price - $/GJAverage selling price for customers including transmission and distribution and after prompt payment discount
Volume Weighted Average LPG Selling Price - $/tonneAverage selling price for customers including after prompt payment discount
Bottled LPG Sales (tonnes)Represents 45kg LPG bottle sales
SME & Other Bulk LPG sales (tonnes)Represents SME and other bulk and 3rd party distributors
Cost to Serve ($ per ICP)Retail costs associated with serving customers across all fuel types divided by the total numbers of ICPs at time of reporting
Netback ($/MWh, $/GJ, $/tonne)
Customer EBITDAF by fuel type plus respective fuel purchase cost divided by total fuel sales volumes, stated in native fuel units (excluding corporate allocation costs and
Technology & Digital cost centre)
GENERATION
Average Price Received for Generation - GWAP ($/MWh) Excludes settlements from electricity derivatives.
Coal (GWh)Coal generation is calculated by applying coal burn to monthly average heat rates
Coal Used In Internal Generation (PJ)Results have been revised to reflect changes in coal kilo tonnes to PJ conversion rate and volume methodology
Rankine's Fuelled by Coal (%)The proportion of coal used in the Rankine units
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 failure or defect
WHOLESALE
Average Retail Electricity Purchase Price - LWAP ($/MWh)Excludes settlements from electricity derivatives
Electricity CFD Purchases - Wholesale (GWh)Settlement volumes of generation hedge purchase contracts, including ASX but excluding Financial Transmission Right (FTRs) or Cap/Collar/Floor contracts
Electricity CFD Sales - Wholesale (GWh)Settlement volumes of generation hedge sale contracts, including ASX but exlcuding Financial Transmission Right (FTRs) or Cap/Collar/Floor contracts
Swaption Sales - Wholesale (GWh)Electricity (swap/option) sales contract volume called, a subset of the Electricity CFD Sales - Wholesale (GWh)
Wholesale LPG Sales (tonnes)Represents wholesale, export sales and transfers to Huntly power station
Weighted Average Gas Burn Cost ($/GJ)Total cost of gas burnt divided by generation from gas fired generation, excluding emissions
Weighted Average Coal Burn Cost ($/GJ)Total cost of coal burnt divided by generation from coal fired generation, excluding emissions
Weighted Average Fuel Cost - Portfolio ($/MWh)Total cost of fuel burnt plus emissions on fuel burnt divided by total generation (thermal, hydro and wind)
Weighted Average Fuel Cost - Thermal ($/MWh)Total cost of fuel burnt plus emissions on fuel burnt divided by total generation from thermal plant
Coal Stockpile - Stored Energy (PJ)The coal stockpile closing balance in tonnes divided by an estimated nominal energy content of Huntly's coal (22 GJ/t)
CORPORATE
Total Recordable Injury Frequency RateRolling 12 month TRIFR per 200,000 hours worked for employees and contractors
Headcount Based on full time equivalents, including contractors
KUPE
Oil Price realised (NZD/bbl)Oil price received including hedge outcome for oil and foreign exchange
Oil Price realised (USD/bbl)The underlying benchmark crude oil price that is used to set the price for crude oil sales
Oil Hedge Levels (%)% hedged for remainder of FY as % of forecast sales
Glossary
ThispresentationhasbeenpreparedbyGenesisEnergyLimited(‘GenesisEnergy’)forinformationpurposesonly.Theinformationin
thispresentationisofageneralnatureanddoesnotpurporttobecompletenordoesitcontainalltheinformationrequiredforan
investortoevaluateaninvestment.Thispresentationmaycontainprojectionsorforward-lookingstatementsregardingavarietyof
items.Suchforward-lookingstatementsarebaseduponcurrentexpectationsandinvolverisksanduncertainties.Actualresultsmay
differmateriallyfromthosestatedinanyforward-lookingstatementbasedonanumberofimportantfactorsandrisks.
Althoughmanagementmayindicateandbelievethattheassumptionsunderlyingtheforward-lookingstatementsarereasonable,any
oftheassumptionscouldproveinaccurateorincorrectand,therefore,therecanbenoassurancethattheresultscontemplatedinthe
forward-lookingstatementswillberealised.EBITDAF,underlyingprofitandfreecashflowarenon-GAAP(generallyaccepted
accountingpractice)measures.Whileallreasonablecarehasbeentakenincompilingthispresentation,tothemaximumextent
permittedbylawGenesisEnergyacceptsnoresponsibilityforanyerrorsoromissionsandnorepresentationismadeastothe
accuracy,completenessorreliabilityoftheinformation.Thispresentationdoesnotconstituteinvestmentadvice.Allreferenceto$are
NewZealanddollars,unlessspecificallystated.
Genesis Energy Limited 1H FY20 Result Presentation 28.
Disclaimer
---
GENESIS ENERGY LIMITED
interim report 2020
2
GENESIS INTERIM REPORT 2020
Tēnā koutou,
Over the six months to 31 December
2019, Genesis saw more customers
than ever before take control of
their own energy management,
proactively analysing and modifying
their energy usage using our
innovative new tools.
Putting Control
in our Customers’ Hands
More than 175,000 residential
and business customers now use
Energy IQ and over 110,000 have
created Energy IQ Home Profiles.
This gives them insights into their
home energy usage, how it compares
to similar homes and energy saving
tips. In November we added the
latest feature, Eco Tracker, a tool
for our customers to check New
Zealand’s electricity sector carbon
emissions in real-time to help
minimise their carbon footprints.
We were proud to see Energy IQ
recognised for its market-leading
innovation at the Deloitte Energy
Excellence Awards 2019, where it
won the Energy Technology of
the Year.
For Dairy enables farmers to save up
to 25% on their energy bills by taking
advantage of better off-peak rates.
As part of our Fonterra Farm Source
partnership, this has increased our
agribusiness connections by 36% and
dairy farmers specifically by 88%.
In October Genesis also announced
the launch of advanced gas
meters for residential metered gas
customers, which will be rolled out
to more than 100,000 customers
during 2020, another first for energy
retailers in New Zealand.
Genesis held its sixth Power Shout
in November 2019, offering 178,000
customers five free hours of
power. In total, Genesis gave away
approximately 890,000 hours or 102
years of free power.
Resilience in a Volatile Market
Genesis delivered an EBITDAF¹ of
$167.2m for the first half of Financial
Year 2020, a decline of 15.3% against
the same period last year. NPAT² for
the period was $9.2m. Final dividend
per share for the period is 8.525c,
up 0.9%.
A letter from our Chairman and CEO
Challenging gas market conditions
for our wholesale segment were
offset somewhat by the continued
strong performance of our retail
segment. This was driven by the
acquisition of more high-value
customers, especially dual-fuel
customers which rose by 5% in
quarter two. Total LPG Sales
Volume rose by 21.1% highlighting
the success of our unique vertical
market position.
Pleasingly, the cost of serving our
customers has dropped by 3.5%
in quarter two, demonstrating the
benefits of greater digitisation of
customer interactions, which now
account for 65% of all interactions.
This focus on high quality customer
service saw net customer churn
drop for the third consecutive year
to 15.8%. Genesis also ranked first
amongst energy companies in
reputation with consumers.³
Genesis’ wholesale segment
performance was affected by
constrained gas supply, lower
inflows into its hydro catchments and
a 30-day planned outage at Kupe,
which all led to higher fuel costs.
Genesis was regularly called upon
to support the market with its
rankines during a period that saw a
19% increase in fuel costs⁴. These
conditions also saw continued calls
on our swaption agreements with
Meridian and Contact.
FROM THE CHAIRMAN
Pukapuka Mai I te Heamana me te Manahautū
CHIEF EXECUTIVE OFFICER
Marc England
MBA, MEng
CHAIRMAN
Barbara Chapman
CNZM, BCom, CMInstD
1. EBITDAF: Earnings before net finance expense, income
tax, depreciation, depletion, amortisation, impairment,
fair value changes, and other gains and losses. Refer
to the consolidated comprehensive income statement
on page 5 for reconciliation from EBITDAF to net profit
after tax.
2. Net Profit After Tax.
3. The Purpose Business, Quarterly Market Tracking Update,
December 2019.
4. Volume weighted average fuel costs for thermal
generation, against previously comparable period.
3
GENESIS INTERIM REPORT 2020
These enable the relevant parties
to call on thermally generated
electricity under certain conditions,
as required, to provide firming
support. Approximately 5.6% of
Genesis’ total Scope 1 emissions
during the period were attributed
to electricity supplied under these
agreements.
Providing resilience during difficult
market conditions reinforces our vital
role as backup thermal generator
to the New Zealand electricity
market, ensuring security of supply
to Kiwi homes and businesses and
moderating the price volatility that
is a historical feature of our 84%
renewable electricity system⁵.
Construction has begun on the
Waipipi Windfarm in Taranaki which
will be operational in 2021. This will
provide 450 GWh of renewable
energy per annum, contributing to
a reduction of 250,000 tonnes of
carbon emissions. Genesis will buy
its entire supply of zero emissions,
renewable electricity.
This, combined with our recent
announcement to progress a new
300 MW solar farm in the upper
Waikato, demonstrates Genesis’
commitment to transition to a lower
carbon energy future.
New Ways of Working for the
Community
Genesis remains strongly committed
to its sustainability and community
initiatives. Genesis School-gen
engages with more than 1,000
New Zealand schools. Last year’s
Super Teacher competition saw 213
teachers nominated for inspiring
young minds to pursue Science,
Technology, Engineering and
Mathematics (STEM). Two winners
were sent to the Space Exploration
Educators Conference in Houston.
Genesis School-gen won Community
Initiative of the Year at the Deloitte
Energy Excellence Awards.
Genesis School-gen Trust is an
independent charitable organisation
that allocates STEM funding to
schools. Its second round of funding
reached seven schools and 2,448
students. More than 1,320 Genesis
customers donate monthly.
In November Genesis was
awarded the YWCA’s GenderTick,
an independently accredited
certification that rewards
organisations that have made a
commitment to gender equality
in the workplace. Genesis is
committed to further increasing the
transparency of our gender diversity
reporting. Read more about the
actions we are taking here.
In the coming six months we are
confident we will continue to deliver
for our shareholders, customers and
all New Zealanders.
Ngā mihi,
Barbara Chapman
Chairman
Marc England
Chief Executive Officer
FROM THE CHIEF EXECUTIVE
5. Reference: Ministry of Business, Innovation and Employment (MBIE) - Energy in New Zealand 2019.
Genesis continued to make good
progress towards the targets set
under our Sustainability Framework.
We launched our internal
sustainability champions network,
Kaitiaki Kenehi (Genesis Guardians)
before Christmas and it currently
has 22 champions across seven
Genesis sites.
This report is the first time as a listed
company that Genesis has reported
its scope-three carbon emissions
alongside one and two. We aim to
extend this further in
our 2020 Annual Report by
reporting in alignment with the
Taskforce on Climate-related
Financial Disclosures.
We have a responsibility as New
Zealand’s largest thermal energy
generator to be transparent about
our carbon footprint and to take a
leadership role in the debate about
how New Zealand can reach its
emissions targets. You can read
more about our sustainability
highlights here.
Scope 1, 2 and 3 emissions (tCO2e)
Scope CategorytCO2e
Direct emissions (Scope 1)
Stationary combustion 1,176,738
Stationary combustion - swaptions69,916
Subtotal stationary combustion1,246,654
Mobile combustion546
Fugitive emissions15
Scope 1Subtotal scope 11,247,215
Indirect emissions (Scope 2)Electricity consumption (location based)100
Subtotal scope 2100
Scope 1 & 2Subtotal scope 1 & 21,247,315
Indirect emissions (Scope 3)Business Travel
Use of sold products (LPG sales)
Office waste to landfill
521
68,020
10
Subtotal68,551
Scope 1, 2 and 3To t a l1,315,866
For six months to 31 December 2019
Championing Sustainability
4
GENESIS INTERIM REPORT 2020
Condensed Consolidated
Interim Financial Statements
For the six months ended
31 December 2019
Condensed
consolidated interim
financial statements
Consolidated comprehensive
income statement
5
Consolidated statement of
changes in equity
6
Consolidated balance sheet7
Consolidated cash flow statement8
Notes to
the condensed consolidated
interim financial statements
General information and significant matters9
A. Financial performance
A1. Underlying EBITDAF and underlying earnings10
A2. Segment reporting11
A3. Depreciation, depletion and amortisation14
B. Operating assets
B1. Property, plant and equipment14
B2. Oil and gas assets14
C. Funding
C1. Borrowings15
C2. Finance expense15
C3. Dividends16
D. Risk management
D1. Derivatives16
D2. Change in fair value of financial instruments16
D3. Fair value measurement17
E. Other
E1. Related party transactions18
E2. Commitments18
E3. Contingent assets and liabilities18
E4. Subsequent events18
Ngā Tauākī Pūtea Tōpū Whakarāpopoto Weherua
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
5
GENESIS INTERIM REPORT 2020
Consolidated comprehensive income statement
For the six months ended 31 December 2019
Note
31 Dec 2019
unaudited
$ million
Restated*
31 Dec 2018
unaudited
$ million
RevenueA2 1,334.2 1,361.0
Expenses (1,167.0) (1,163.5)
Earnings before net finance expense, income tax, depreciation, depletion,
amortisation, impairment, fair value changes and other gains and losses
(EBITDAF)
A2 167.2 197.5
Depreciation, depletion and amortisationA3(109.9)(100.4)
(Impairment) / impairment reversal of non-current assets(0.1 ) 2.6
Change in fair value of financial instrumentsD2(4.8) 8.1
Share of associates(0.4) -
Other gains (losses)( 3.1 ) -
Profit before net finance expense and income tax 48.9 107.8
Finance revenue 0.1 0.3
Finance expenseC2 (36.2) (39.1)
Profit before income tax 12.8 69.0
Income tax expense (3.6) (19.6)
Net profit for the period 9.2 49.4
Other comprehensive income
Change in cash flow hedge reserve 15.5 16.7
Income tax expense relating to items above (4.3) (4.7)
Total items that may be reclassified to profit or loss 11.2 12.0
Total other comprehensive income for the period11.2 12.0
Total comprehensive income for the period20.4 61.4
Earnings per share (EPS) from operations attributable to shareholders Cents Cents
Basic and diluted EPS0.90 4.91
* The comparative information has been restated to reflect the adoption of a new accounting standard. Refer to the ‘General
information and significant matters’ section in the notes for a reconciliation to the previously reported information.
The above statement should be read in conjunction with the accompanying notes.
6 months ended
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
6
GENESIS INTERIM REPORT 2020
Consolidated statement of changes in equity
For the six months ended 31 December 2019
Note
Share
capital
unaudited
$ million
Share-
based
payments
reserve
unaudited
$ million
Asset
revaluation
reserve
unaudited
$ million
Cash flow
hedge
reserve
unaudited
$ million
Retained
earnings
unaudited
$ million
Total
unaudited
$ million
Balance as at 1 July 2019 597.6 1.7 1,398.2 (59.7) 213.0 2,150.8
Restatement for adoption of new
accounting policies*
- - - - (5.8)(5.8)
Restated balance as at 1 July 2019 597.6 1.7 1,398.2 (59.7) 207.2 2,145.0
Net profit for the period - - - - 9.2 9.2
Other comprehensive income
Change in cash flow hedge reserve - - - 15.5 - 15.5
Income tax expense relating to other
comprehensive income
- - - (4.3) - (4.3)
Total comprehensive income for the period - - - 11.2 9.2 20.4
Revaluation reserve reclassified to retained
earnings on disposal of assets
- -(0.1 ) -0.1 -
Share-based payments (0.3) (0.4) - - - (0.7)
Shares issued under dividend reinvestment planC3 18.9 - - - - 18.9
Net change in treasury shares 0.4 - - - - 0.4
DividendsC3 - - - - (88.1) (88.1)
Balance as at 31 December 2019616.6 1.3 1,398.1 (48.5) 128.4 2,095.9
Note
Share
capital
unaudited
$ million
Share-
based
payments
reserve
unaudited
$ million
Asset
revaluation
reserve
unaudited
$ million
Cash flow
hedge
reserve
unaudited
$ million
Restated
retained
earnings
unaudited
$ million
Restated
total
unaudited
$ million
Balance as at 1 July 2018 557.7 1.6 1,115.3 (43.3) 325.1 1,956.4
Restatement for adoption of new
accounting policies*
- - - - (5.7)(5.7)
Restated balance as at 1 July 2018557.7 1.6 1,115.3 (43.3)319.41,950.7
Restated net profit for the period - - - - 49.4 49.4
Other comprehensive income
Change in cash flow hedge reserve - - - 16.7 - 16.7
Income tax expense relating to other
comprehensive income
- - - (4.7) - (4.7)
Restated total comprehensive income for
the period
- - - 12.0 49.4 61.4
Shares issued under dividend reinvestment planC3 18.6 - - - - 18.6
Net change in treasury shares(1.0) - - - - (1.0)
DividendsC3 - - - - (86.7)(86.7)
Restated balance as at 31 December 2018 575.3 1.6 1,115.3 (31.3) 282.1 1,943.0
* A new accounting standard has been adopted during the period. Refer to the ‘General information and significant matters’ section in
the notes for a reconciliation to the previously reported information.
The above statement should be read in conjunction with the accompanying notes.
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
7
GENESIS INTERIM REPORT 2020
Consolidated balance sheet
As at 31 December 2019
Note
31 Dec 2019
unaudited
$ million
Restated*
30 Jun 2019
audited
$ million
Cash and cash equivalents 26.1 61.9
Receivables and prepayments 205.8 226.7
Inventories 113.7 126.6
Intangible assets 22.7 7. 6
Tax receivable 6.0 16.2
DerivativesD1 26.4 39.9
Total current assets 400.7 478.9
Receivables and prepayments 2.8 0.9
Inventories - 4.2
Property, plant and equipmentB1 3,402.2 3,449.0
Oil and gas assetsB2 311.9 324.1
Intangible assets 359.4 364.0
Investments in associates 2.7 0.2
DerivativesD1 68.2 68.0
Total non-current assets 4,147.2 4,210.4
Total assets 4,547.9 4,689.3
Payables and accruals 233.1 241.5
BorrowingsC1 120.7 181.6
Provisions 10.5 11.3
DerivativesD1 63.3 70.7
Total current liabilities 427.6 505.1
Payables and accruals 5.2 0.7
BorrowingsC1 1 ,1 8 6 .0 1,173.4
Provisions 151.2 153.9
Deferred tax 639.6 653.8
DerivativesD1 42.4 5 7.4
Total non-current liabilities 2,024.4 2,039.2
Total liabilities 2,452.0 2,544.3
Share capital 616.6 597.6
Reserves 1,479.3 1,547.4
Total equity 2,095.9 2,145.0
Total equity and liabilities 4,547.9 4,689.3
* The comparative information has been restated to reflect the adoption of a new accounting standard. Refer to the 'General
information and significant matters' section in the notes for a reconciliation to the previously reported information.
The above statement should be read in conjunction with the accompanying notes.
The Directors of Genesis Energy Limited authorise these condensed consolidated interim financial statements for issue on behalf of
the Board.
Barbara Chapman
Chairman of the Board
Date 20 February 2020
Catherine Drayton
Chairman of the Audit and Risk Committee
Date 20 February 2020
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
8
GENESIS INTERIM REPORT 2020
Consolidated cash flow statement
For the six months ended 31 December 2019
Note
31 Dec 2019
unaudited
$ million
Restated*
31 Dec 2018
unaudited
$ million
Receipts from customers1,351.91,387.4
Interest received0.10.3
Payments to suppliers and related parties(1,126.5)(1,143.9)
Payments to employees(51.9)(49.2)
Tax paid(11.9)(18.7)
Operating cash flows161.7175.9
Proceeds from disposal of property, plant and equipment-0.2
Payments to associates(2.9) -
Purchase of property, plant and equipment(21.0)(24.9)
Purchase of oil and gas assets(12.8)(2.6)
Purchase of intangibles (excluding emission units and deferred customer acquisition
costs)
(9.5)(9.4)
Investing cash flows(46.2)(36.7)
Proceeds from borrowings4.9240.0
Repayment of borrowings(52.8)(282.3)
Interest paid and other finance charges(34.1)(39.1)
DividendsC3(69.2)(68.1)
Acquisition of treasury shares(0.1 )(1.0)
Financing cash flows(151.3)(150.5)
Net increase (decrease) in cash and cash equivalents(35.8)(11.3)
Cash and cash equivalents at 1 July61.949.3
Cash and cash equivalents at 31 December2 6 .1 38.0
6 months ended
Reconciliation of net profit to operating cash flowsNote
31 Dec 2019
unaudited
$ million
Restated*
31 Dec 2018
unaudited
$ million
Net profit for the period 9.2 49.4
Net loss on disposal of property, plant and equipment 0.8 0.1
Interest and other finance charges paid 33.7 36.3
Items classified as investing/financing activities 34.5 36.4
Depreciation, depletion and amortisation expenseA3109.9100.4
Impairment / (impairment reversal) of non-current assets 0.1(2.6)
Change in fair value of financial instrumentsD24.8(8.1)
Deferred tax expense(18.5)(11.6)
Change in capital expenditure accruals(8.4)(2.4)
Change in rehabilitation and contractual arrangement provisions5.10.5
Share of associates0.4 -
Other non-cash items0.70.1
Total non-cash items94.176.3
Change in receivables and prepayments19.025.0
Change in inventories1 7.1(6.3)
Change in emission units on hand(1 5.1 )0.3
Change in deferred customer acquisition costs0.1(0.9)
Change in payables and accruals(3.9)(19.8)
Change in tax receivable/payable10.212.2
Change in provisions(3.5)3.3
Movements in working capital23.913.8
Net cash inflow from operating activities161.7175.9
6 months ended
* The comparative information has been restated to reflect the adoption of a new accounting standard. Refer to the 'General information and significant
matters' section in the notes for a reconciliation to the previously reported information.
The above statement should be read in conjunction with the accompanying notes.
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
9
GENESIS INTERIM REPORT 2020
Notes to the condensed consolidated interim financial statements
For the six months ended 31 December 2019
General information
The unaudited condensed consolidated interim financial statements comprise Genesis Energy Limited (‘Genesis’), its subsidiaries,
controlled entities, and the Group’s interests in associates and joint operations (together, the ‘Group’) for the six month period ended
31 December 2019.
Genesis is registered under the Companies Act 1993. It is a mixed ownership model company, majority owned by the ‘Crown’, bound
by the requirements of the Public Finance Act 1989. Genesis is listed on the New Zealand Stock Exchange (NZX) and the Australian
Securities Exchange (ASX) and has bonds listed on the NZX debt market. Genesis is an FMC reporting entity under the Financial
Markets Conduct Act 2013.
The core business of the Group and activities carried out by each segment is disclosed in note A2.
Basis of preparation
The condensed consolidated interim financial statements:
• Comply with New Zealand Equivalent to International Accounting Standard 34 Interim Financial Reporting and International
Accounting Standard 34 Interim Financial Reporting;
• Do not include all the information and disclosures required in the annual financial statements. Consequently, they should be read
in conjunction with the annual financial statements and related notes included in Genesis Energy’s Annual Report for the year
ended 30 June 2019 (‘2019 Annual Report’);
• Are presented in New Zealand dollars rounded to the nearest 100,000.
Critical accounting estimates and judgements
The basis of critical accounting estimates and judgements are the same as those disclosed in the 2019 Annual Report.
Seasonality of operations
Fluctuations in seasonal weather patterns can have a significant impact on supply and demand and therefore the generation of
electricity, which in turn can have a positive or negative impact on reported results.
Accounting policies
During the period the Group adopted NZ IFRS 16 Leases (‘NZ IFRS 16’). The accounting policies set out in the 2019 Annual Report have
been applied consistently to all periods presented, with the exception of those impacted by NZ IFRS 16. There have been no other
significant changes in accounting policies or methods of computation since 30 June 2019.
NZ IFRS 16 Leases
As noted in the 2019 Annual Report the adoption of NZ IFRS 16 has resulted in changes to how leases are recognised, measured and
disclosed. The standard provides a single lessee accounting model, requiring lessees to recognise right-of-use assets (lease assets)
and lease liabilities for all lease arrangements that meet the definition of a lease, except for short-term leases where the lease term is
12 months or less and leases of low value assets. For these leases the Group recognises the lease payments as operating expenses on
a straight-line basis over the term of the lease.
The lease liability on initial recognition comprises the present value of the lease payments that are not paid at the commencement
date. This includes fixed payments less any lease incentives receivable and variable lease payments that are based on an index or rate.
The lease payments are discounted using the incremental borrowing rate, being the rate that the Group would have to pay to borrow
the funds necessary to obtain an asset of similar value in a similar economic environment with similar terms and conditions.
The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the
effective interest method) and reducing the carrying amount to reflect the lease payments made. The Group remeasures the lease
liability (and makes a corresponding adjustment to the related lease asset) whenever the lease term changes, the lease payments
change due to changes in an index or rate or a lease contract is modified and the lease modification is not accounted for as a separate
lease.
The lease assets comprises the amount of the corresponding initial lease liability, lease payments made at or before the
commencement date, initial direct costs and restoration costs. The lease asset is subsequently measured at cost less accumulated
depreciation and impairment losses. The lease asset is depreciated over the lease term, on a straight-line basis. The lease term ranges
from 4 to 38 years.
NZ IFRS 16 was adopted using the retrospective method and as a result the comparative information has been restated. Retained
earnings as at 1 July 2018 was adjusted by $5.7 million as a result of retrospectively adopting the standard. The Group elected not to
reassess whether a contract contains a lease at the date of initial application, instead for contracts entered into before the transition
date, the Group relied on the assessment made applying the previous standard, NZ IAS 17 Leases and IFRIC 4 Determining whether an
arrangement contains a lease. The impact of adopting the standard is disclosed on the next page.
General information and significant matters
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
10
GENESIS INTERIM REPORT 2020
Consolidated comprehensive income statement
For the six months ended 31 Dec 2018
As originally
presented
$ million
NZ IFRS 16
$ million
Restated
$ million
EBITDAF195.5 2.0 197.5
Depreciation, depletion and amortisation(98.1)(2.3)(100.4)
(Impairment) / impairment reversal of non-current assets(0.2)2.8 2.6
Finance expense(37.1)(2.0)(39.1)
Profit before income tax68.5 0.5 69.0
Income tax expense(19.5)(0.1)(19.6)
Net profit after tax49.0 0.4 49.4
Determining the number of renewal periods to include in the lease term can have a material impact on the value of the lease asset
included in property, plant and equipment and the lease liability included in borrowings.
Consolidated cash flow statement
For the six months ended 31 Dec 2018
As originally
presented
$ million
NZ IFRS 16
$ million
Restated
$ million
Operating cash flows171.0 4.9 175.9
Financing cash flows(145.6)(4.9)(150.5)
Consolidated balance sheet
As at 30 Jun 2019
As originally
presented
$ million
NZ IFRS 16
$ million
Restated
$ million
Property, plant and equipment3,392.8 56.2 3,449.0
Inventories130.2 0.6 130.8
Borrowings(1,289.8)(65.2)(1,355.0)
Provisions(165.6)0.4 (165.2)
Deferred tax(656.0)2.2 (653.8)
Retained earnings(213.0)5.8 (207.2)
Earnings per share increased from 4.87 cents per share to 4.91 cents per share as a result of adopting NZ IFRS 16.
A1. Underlying EBITDAF and underlying earnings
Underlying EBITDAF and underlying earnings are performance measures used internally to provide insight into the operating
performance of the Group by adjusting for items that are outside Management’s control or items that relate to strategic rather than
operational decisions. Items are excluded from underlying EBITDAF and underlying earnings when they meet the criteria outlined in
the Group’s non-GAAP financial information policy (refer to www.genesisenergy.co.nz/investors/governance/documents for a copy of
the policy). These measures are not defined in NZ IFRS and therefore are considered to be non-GAAP performance measures. They
should not be viewed in isolation nor considered a substitute for measures reported in accordance with NZ IFRS. Underlying EBITDAF
and underlying earnings are used by many companies, however, because these measures are not defined by NZ IFRS they may not
be uniformly defined or calculated. Accordingly, these measures may not be comparable with similarly titled measures used by other
companies.
A. Financial performance
Reconciliation of reported net profit to underlying earningsNote
31 Dec 2019
unaudited
$ million
Restated
31 Dec 2018
unaudited
$ million
Net profit for the period 9.2 49.4
Change in fair value of financial instrumentsD2 4.8 (8.1)
Impairment / (impairment reversal) of non-current assets 0.1 (2.6)
Unrealised loss on revaluation of carbon units held for trading 4.0 -
Adjustments before tax expense 8.9 (10.7)
Tax expense on adjustments (2.5) 3.0
Adjustments after tax expense 6.4 ( 7. 7 )
Underlying earnings 15.6 41.7
CentsCents
Underlying EPS 1.53 4.14
There were no differences between reported EBITDAF and underlying EBITDAF.
6 months ended
NZ IFRS 16 Leases (continued)
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
11
GENESIS INTERIM REPORT 2020
SegmentActivity
RetailSupply of energy (electricity, gas and LPG) and related services to end users.
Wholesale
Supply of electricity to the wholesale electricity market, supply of gas and LPG to
wholesale customers and the Retail segment and the sale and purchase of derivatives
to fix the price of electricity.
Kupe
Exploration, development and production of gas, oil and LPG. Supply of gas and LPG
to the Wholesale segment and supply of light oil.
Corporate
Head-office functions, including new generation investigation and development, fuel
management, human resources, finance, corporate relations, property management,
legal and corporate governance.
The segments are based on the different products and services offered by the Group. All segments operate in New Zealand. No
operating segments have been aggregated. The Group has no individual customers that account for 10.0 per cent or more of the
Group’s external revenue (31 December 2018: none). Included in the Retail segment result is $18.7 million of costs (31 December 2018:
$18.0 million) relating to the Technology and Digital team who provide services to all of the segments.
Reconciliation of expenses in the consolidated comprehensive income statement to the segment note
Expenses in the consolidated comprehensive income statement includes external costs, employee benefits and other operating
expenses.
Intersegment revenue
Sales between segments is based on transfer prices developed in the context of long-term contracts. The electricity transfer price per
MWh charged between Wholesale and Retail was $83.94 (31 December 2018: $81.99).
Restatement of comparative segment note
The structure of the segment note has been updated to reflect enhanced internal business reporting and as a result the comparative
segment note has been restated to provide comparability with the current period. Key changes to the segment note include:
• Intersegment revenues and expenses of $359.5 million are shown separately by segment (previously disclosed in total by product);
• Petroleum revenue of $56.6 million previously reported has been split into LPG ($41.3 million) and oil ($15.3 million);
• Petroleum production, marketing and distribution expense of $26.2 million previously reported has been split into LPG ($13.8
million), oil (-$0.8 million), other costs ($5.7 million) and other operating expenses ($7.5 million);
• Emissions revenue and expense was not reported separately previously. The $7.1 million revenue and $11.4 million expense (made
up of $4.3 million emissions associated with generation and $7.1 million emissions associated with fuel sales) was previously
reported with the product it related to (electricity ($2.5 million revenue), gas ($3.8 million revenue and $4.5 million expense), fuels
consumed in electricity generation ($4.3 million expense), LPG ($0.6 million revenue and $2.4 million expense) and other ($0.2
million revenue and $0.2 million operating expenses));
• Other revenue of $6.4 million has been allocated to products ($6.7 million to electricity, -$0.4 million to gas and $0.1 million to
LPG);
• Electricity purchase, transmission and distribution of $756.4 million previously reported has been split into electricity purchases
($477.5 million) and electricity network, transmission, levies and meters ($278.9 million);
• Gas purchase, transmission and distribution of $134.3 million previously reported has been split into gas purchases ($97.7 million)
and gas network, transmission, levies and meters ($36.6 million);
• $30.8 million of expenses previously reported in other operating expenses has been reclassified to electricity network,
transmission, levies and meters ($29.5 million), gas network, transmission, levies and meters ($0.5 million) and other costs ($0.8
million);
• All lines below EBITDAF remain unchanged.
In addition to changes in the structure of the segment note, the comparative numbers have been restated to reflect:
• The change in the reporting line for Technology and Digital from Corporate to Retail. Material lines impacted by the change are
employee benefits, other operating expenses and depreciation, depletion and amortisation, which have decreased by $3.7 million,
$11.6 million and $2.4 million respectively for Corporate with a corresponding increase for Retail;
• Removal of corporate cost allocations, which has resulted in a $3.9 million increase in employee benefits and a $10.5 million
increase in other operating expenses for Corporate, and a $2.1 million decrease and $6.3 million decrease respectively for Retail
and $1.8 million and $4.2 million decrease respectively for Wholesale;
• Adoption of the new lease standard NZ IFRS 16, which has resulted in a $0.5 million decrease in other operating expenses for
Retail, a $0.7 million increase for Wholesale and a $2.2 million decrease for Corporate. An increase in depreciation, depletion and
amortisation of $0.4 million for Retail, $0.3 million for Wholesale and $1.6 million for Corporate. Impairment of non-current assets
decreased by $2.8 million for Wholesale and finance expense increased by $0.2 million for Retail, $0.7 million for Wholesale and
$1.1 million for Corporate.
A2. Segment reporting
The Group reports activities under four segments as follows:
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
12
GENESIS INTERIM REPORT 2020
Six months ended 31 December 2019
Retail
unaudited
$ million
Wholesale
unaudited
$ million
Kupe
unaudited
$ million
Corporate
unaudited
$ million
To t a l
unaudited
$ million
Electricity
673.7 412.9 - - 1,086.6
Gas
84.4 58.0 - - 142.4
LPG
41.9 0.6 4.2 - 46.7
Oil
- - 11.8 - 11.8
Emissions on fuel sales and electricity contracts
0.1 9.3 0.5 - 9.9
Emission unit revenue from trading
- 34.9 - - 34.9
Other revenue 1.1 0.2 0.3 0.3 1.9
Total external revenue
801.2 515.9 16.8 0.3 1,334.2
Electricity – intersegment - 281.9 - - 281.9
Gas – intersegment - 34.5 39.9 - 74.4
LPG – intersegment - 13.5 8.9 - 22.4
Emissions on fuel sales – intersegment - - 1.0 - 1.0
Total segment revenue 801.2 845.8 66.6 0.3 1,713.9
Electricity purchases - (393.5) - - (393.5)
Electricity network, transmission, levies and meters (300.2) (9.5) - - (309.7)
Fuel consumed in electricity generation - (110.8) - - (110.8)
Gas purchases (0.2) (118.3) - - (118.5)
Gas network, transmission, levies and meters(36.2)(0.1) - -(36.3)
LPG purchases, inventory changes and transportation costs(8.1)(4.3)(0.1) -(12.5)
Oil inventory changes, storage and transportation costs - -0.5 - 0.5
Emissions associated with electricity generation - (10.2) - - (10.2)
Emissions associated with fuel sales - (12.6) (7.7) - (20.3)
Emission unit expenses from trading - (26.3) - - (26.3)
Other costs (0.1) - (6.0) - (6 .1 )
Total external costs (344.8) (685.6) (13.3) - (1,043.7)
Electricity purchases – intersegment (281.9) - - - (281.9)
Fuel consumed in electricity generation – intersegment - (39.9) - - (39.9)
Gas purchases – intersegment (34.5) - - - (34.5)
LPG purchases, inventory changes and transportation costs – intersegment (13.5) (8.9) - - (22.4)
Emission costs – intersegment - (1.0) - - (1.0)
Total segment costs (674.7) (735.4) (13.3) - (1,423.4)
Gross margin 126.5 110.4 53.3 0.3 290.5
Employee benefits (25.0) (14.6) - (12.8) (52.4)
Other operating expenses (37.5) (16.8) (10.3) (6.3) (70.9)
Earnings before net finance expense, income tax, depreciation,
depletion, amortisation, impairment, fair value changes and other
gains and losses (EBITDAF)
64.0 79.0 43.0 (18.8) 167.2
Depreciation, depletion and amortisation (13.0) (67.3) (25.8) (3.8) (109.9)
Impairment of non-current assets - (0.1) - - (0.1 )
Change in fair value of financial instruments - (4.9) (0.4) 0.5 (4.8)
Share of associates (0.2) (0.2) - - (0.4)
Other gains (losses)(0.1)(4.0) -1.0( 3.1 )
Profit (loss) before net finance expense and income tax 50.7 2.5 16.8 ( 2 1 .1 ) 48.9
Finance revenue - - - 0.1 0.1
Finance expense (0.1) (1.7) (1.5) (32.9) (36.2)
Profit (loss) before income tax 50.6 0.8 15.3 (53.9) 12.8
Other segment information
Capital expenditure 8.9 26.0 11.7 1.0 4 7. 6
A2. Segment reporting (continued)
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
13
GENESIS INTERIM REPORT 2020
A2. Segment reporting (continued)
Six months ended 31 December 2018
Restated
retail
unaudited
$ million
Restated
wholesale
unaudited
$ million
Restated
kupe
unaudited
$ million
Restated
corporate
unaudited
$ million
Restated
total
unaudited
$ million
Electricity655.0 485.1 - - 1,140.1
Gas82.6 45.6 - - 128.2
LPG34.2 1.7 4.9 - 40.8
Oil - - 15.3 - 15.3
Emissions on fuel sales and electricity contracts - 6.7 0.4 - 7.1
Emission unit revenue from trading - 25.1 - - 25.1
Other revenue0.4 3.2 0.5 0.3 4.4
Total external revenue772.2 567.4 2 1.1 0.3 1,361.0
Electricity – intersegment - 271.3 - - 271.3
Gas – intersegment - 30.3 42.9 - 73.2
LPG – intersegment - 9.6 7. 6 - 17.2
Emissions on fuel sales – intersegment - - (2.2) - (2.2)
Total segment revenue772.2 878.6 69.4 0.3 1,720.5
Electricity purchases - (477.5) - - (477.5)
Electricity network, transmission, levies and meters(298.9)(9.5) - - (308.4)
Fuel consumed in electricity generation - (72.4) - - (72.4)
Gas purchases(0.2)(93.0) - - (93.2)
Gas network, transmission, levies and meters(37.0)(0.1) - - (37.1)
LPG purchases, inventory changes and transportation costs(7.2)(4.2) - - (11.4)
Oil inventory changes, storage and transportation costs - - 0.8 - 0.8
Emissions associated with electricity generation - (4.3) - - (4.3)
Emissions associated with fuel sales - (4.7)(2.4) - ( 7.1 )
Emission unit expenses from trading - (23.9) - - (23.9)
Other costs(0.2)(0.6)(5.7) - (6.5)
Total external costs(343.5)(690.2)(7.3) - (1,041.0)
Electricity purchases – intersegment(271.3) - - - (271.3)
Fuel consumed in electricity generation – intersegment - (42.9) - - (42.9)
Gas purchases – intersegment(30.3) - - - (30.3)
LPG purchases, inventory changes and transportation costs –
intersegment
(9.6)( 7. 6 ) - - (17.2)
Emission costs – intersegment - 2.2 - - 2.2
Total segment costs(654.7)(738.5)(7.3) - (1,400.5)
Gross margin117.5 140.162.1 0.3 320.0
Employee benefits(24.4)(12.5)(0.1) (12.2)(49.2)
Other operating expenses(38.0)(18.8)(9.5) (7.0)(73.3)
Earnings before net finance expense, income tax, depreciation,
depletion, amortisation, impairment, fair value changes and
other gains and losses (EBITDAF)
55.1 108.8 52.5 (18.9)197.5
Depreciation, depletion and amortisation(11.0)(53.7)(32.2)(3.5)(100.4)
(Impairment) / impairment reversal of non-current assets(0.1)2.7 - - 2.6
Change in fair value of financial instruments - 6.0 1.5 0.6 8.1
Profit (loss) before net finance expense and income tax 44.0 63.8 21.8 (21.8)107.8
Finance revenue - - - 0.3 0.3
Finance expense(0.4)(1.8)(1.8)(35.1)(39.1)
Profit (loss) before income tax43.6 62.0 20.0 (56.6)69.0
Other segment information
Capital expenditure13.3 20.1 2.8 0.7 36.9
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
14
GENESIS INTERIM REPORT 2020
A3. Depreciation, depletion and amortisation
31 Dec 2019
unaudited
$ million
Restated
31 Dec 2018
unaudited
$ million
Property, plant and equipment 72.8 58.8
Oil and gas assets 23.929.8
Intangibles (excluding amortisation of deferred customer acquisition costs) 13.2 11.8
109.9 100.4
6 months ended
B. Operating assets
B1. Property, plant and equipment
6 months ended
31 Dec 2019
unaudited
$ million
Restated
year ended
30 Jun 2019
audited
$ million
Opening balance 3,449.0 3,110.5
Additions2 7. 665.2
Revaluation of generation assets
Increase taken to revaluation reserve-394.6
Increase taken to the income statement-4.6
Change in rehabilitation and contractual arrangement assets-2.7
Transfer to intangible assets-(11.3)
Disposals(1.2)(0.3)
Impairment(0.1 )1.4
Depreciation expense recognised in inventories(0.3)(1.7)
Depreciation expense (72.8) (116.7)
Closing balance 3,402.2 3,449.0
Property, plant and equipment includes $53.5 million of leased assets (30 June 2019: $57.3 million, of which $56.2 million was
recognised on transition to NZ IFRS 16 (refer to the 'General information and significant matters' section) and $1.1 million was
previously recognised in property, plant and equipment).
B2. Oil and gas assets
6 months ended
31 Dec 2019
unaudited
$ million
Year ended
30 Jun 2019
audited
$ million
Opening balance 324.1 378.4
Additions11.79.0
Change in rehabilitation asset-(4.8)
Depreciation and depletion expense (23.9) (58.5)
Closing balance 311.9 324.1
Since 30 June 2019 the only change to the estimated remaining reserves disclosed in the 2019 Annual Report was in relation to actual
production for the six months ended 31 December 2019 of 15.0 PJe. The estimated remaining reserves balance as at 31 December
2019 was 173.1 PJe for proved reserves (1P) and 304.0 PJe for proved and probable reserves (2P) (30 June 2019: 188.1 PJe and 319.0 PJe
respectively).
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
15
GENESIS INTERIM REPORT 2020
C. Funding
C1. Borrowings
31 Dec 2019
unaudited
$ million
Restated
30 Jun 2019
audited
$ million
Revolving credit and money market 159.1 154.5
Fixed-term loan facility 30.0 30.0
Wholesale term notes 242.5292.8
Retail term notes100.8100.7
Capital bonds 474.3 474.5
United States Private Placement ('USPP') 236.8 237.3
Lease liability63.2 65.2
To t a l 1,306.7 1,355.0
Current 120.7 181.6
Non-current 1 ,1 8 6 .0 1,173.4
To t a l 1,306.7 1,355.0
The current portion of borrowings has reduced by $60.9 million mainly due to the repayment of $50.0 million wholesale term notes.
Revolving credit
As at 31 December 2019 the Group had drawn down $125.0 million (30 June 2019: $110.0 million) from the revolving credit facility and
had available undrawn funding of $300.0 million (30 June 2019: $240.0 million). The Group also had drawn down $34.0 million of
uncommitted money market lines (30 June 2019: $44.4 million).
Fair value of borrowings held at amortised cost
31 Dec 2019
Carrying value
unaudited
$ million
31 Dec 2019
Fair value
unaudited
$ million
30 Jun 2019
Carrying value
audited
$ million
30 Jun 2019
Fair value
audited
$ million
Level one
Retail term notes 100.8 105.5100.7 105.7
Capital bonds474.3495.3474.5 498.6
Level two
Fixed-term loan facility30.032.030.0 32.1
Wholesale term notes 242.5 262.2292.8 316.0
USPP 236.8 242.1237.3 241.6
The carrying value of all other borrowings approximates their fair values.
The valuation of the fixed-term loan facility and the wholesale term notes is based on estimated discounted cash flow analyses, using
applicable market yield curves adjusted for the Group’s credit rating. The credit-adjusted market yield curves used in the valuation at
the reporting date ranged from 1.9 per cent to 2.9 per cent (30 June 2019: 1.9 per cent to 3.0 per cent).
The valuation of USPP is based on estimated discounted cash flow analyses, using applicable United States market yield curves
adjusted for the Group’s credit rating. The credit-adjusted market yield used in the valuation at the reporting date was 2.4 per cent (30
June 2019: 2.6 per cent).
C2. Finance expense
31 Dec 2019
unaudited
$ million
Restated
31 Dec 2018
unaudited
$ million
Interest on borrowings (excluding capital bonds and lease liability) 19.5 21.5
Interest on capital bonds 12.8 12.8
Interest on lease liability 1.9 2.1
Total interest on borrowings34.2 36.4
Other interest and finance charges 0.1 0.2
Time value of money adjustments on provisions 2.5 2.8
36.8 39.4
Capitalised finance expenses (0.6) (0.3)
36.2 39.1
6 months ended
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
16
GENESIS INTERIM REPORT 2020
C3. Dividends
Imputation
unaudited
Cents per
share
unaudited
$ million
unaudited
Imputation
unaudited
Cents per
share
unaudited
$ million
unaudited
Dividends declared and paid during the period
Prior period final dividend80%8.60 88.1 80%8.60 86.7
Less dividend reinvestment plan ('DRP')(18.9)(18.6)
Cash dividend paid69.2 68.1
Dividends declared subsequent to reporting date
Current period interim dividend 80% 8.525 87.8 80%8.45 85.8
6 months ended
31 Dec 2019
6 months ended
31 Dec 2018
D. Risk management
D1. Derivatives
31 Dec 2019
unaudited
$ million
30 Jun 2019
audited
$ million
Electricity swaps and options (19.3) (26.3)
Oil swaps (2.2) (1.7)
Interest rate swaps (26.2) (29.4)
Cross-currency interest rate swaps (‘CCIRS’) 38.037.9
Foreign exchange contracts (1.5) (0.3)
Other derivatives 0.1 (0.4)
To t a l (11.1) (20.2)
Current assets 26.4 39.9
Non-current assets 68.268.0
Current liabilities (63.3) ( 70.7)
Non-current liabilities (42.4)( 5 7.4 )
To t a l (11.1) (20.2)
The process and method of valuing derivatives is outlined in note D3.
D2. Change in fair value of financial instruments
31 Dec 2019
unaudited
$ million
31 Dec 2018
unaudited
$ million
CCIRS 0.1 4.8
Interest rate swaps (0.8) 3.9
Fair value interest rate risk adjustment on borrowings 0.9 (8.8)
Fair value hedges – gain (loss) 0.2 (0.1)
Cash flow hedges – hedge ineffectiveness – gain (loss) 2.8 2.5
Electricity swaps and options (8.6) 6.0
Other derivatives 0.8 (0.3)
Derivatives not designated as hedges – gain (loss) ( 7. 8 ) 5.7
Total change in fair value of financial instruments (4.8) 8.1
6 months ended
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
17
GENESIS INTERIM REPORT 2020
D3. Fair value measurement
Fair value hierarchy
The Group’s assets and liabilities measured at fair value are categorised into one of three levels. The levels are outlined in the 2019
Annual Report.
The Group’s policy is to recognise transfers into and out of fair value hierarchy levels at the date the change in circumstances
occurred. There were no transfers between levels one, two and three during the period (31 December 2018: nil).
Level two and three items carried at fair value
All derivatives disclosed in D1 other than electricity swaps and options are considered level two. The $19.3 million electricity swap
and option net liability comprises a $1.6 million asset classified as level two and a $20.9 million liability classified as level three (30
June 2019: $1.3 million liability and $25.0 million liability respectively). Emission units held for trading, recorded in inventory, are level
two instruments. The carrying value of the units as at 31 December 2019 was $25.6 million (30 June 2019: $24.4 million). Generation
assets, recorded in property, plant and equipment, are considered to be level three. The carrying value of generation assets as at 31
December 2019 was $3,206.7 million (30 June 2019: $3,259.0 million).
Valuation of level two items carried at fair value
The fair values of level two derivatives and emission units held for trading are determined using discounted cash flow models. The key
inputs in the valuation models are the same as those disclosed in the 2019 Annual Report.
Valuation of level three items carried at fair value
Valuation method and process
The method and process used to value level three generation assets and derivatives is consistent with that disclosed in the 2019
Annual Report.
Valuation of electricity swaps and options
The valuation is based on a discounted cash flow model. The key inputs and assumptions are: the callable volumes, strike price and
option fees outlined in the agreement, the wholesale electricity price path (‘price path’), ‘day one’ gains and losses, emission credits
and the discount rate. The options are deemed to be called when the price path is higher than the strike prices after taking into
account obligations relating to the specific terms of each contract. No calling is required for the swaps and there are no option fees.
The price path is the significant unobservable input in the valuation model. Refer to the 2019 Annual Report for information in relation
to the method used to determine the price path. Changes in electricity demand, hydrology and new generation build affect the price
path.
Reconciliation of level three electricity swaps and options
6 months ended
31 Dec 2019
unaudited
$ million
Year ended
30 Jun 2019
audited
$ million
Opening balance (25.0) 10.7
Electricity revenue 12.212.8
Change in fair value of financial instruments (8.4)(14.1)
Total gain (loss) in the income statement 3.8(1.3)
Total loss recognised in other comprehensive income (0.2)(60.4)
Settlements 13.049.1
Sales (12.5) (23.1)
Closing balance (20.9) (25.0)
The change in fair value of financial instruments includes an unrealised loss of $9.4 million (30 June 2019: $6.6 million loss).
31 Dec 2019
unaudited
30 Jun 2019
audited
Price path
$93 per MWh to $134 per MWh over the period
from 1 January 2020 to 31 December 2025.
$92 per MWh to $114 per MWh over the period
from 1 July 2019 to 31 December 2025.
Impact of increase/decrease
in price path on fair value
A 10% increase would decrease the liability by
$8.9 million. A 10% decrease would increase the
liability by $9.2 million.
A 10% increase would decrease the liability by
$34.9 million. A 10% decrease would increase
the liability by $31.4 million.
Other unobservable inputs
31 Dec 2019
unaudited
30 Jun 2019
audited
Emission credits (price per unit)$25 - $54$27 - $48
Discount rate1.2% - 2.9%1.3% - 3.6%
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
18
GENESIS INTERIM REPORT 2020
D3. Fair value measurement (continued)
Deferred ‘day one’ gains (losses)
There is a presumption that when derivative contracts are entered into on an arm’s-length basis, and no payment is received or paid
on day one, the fair value at inception would be nil. The contract price of non-exchange traded electricity derivative contracts are
agreed on a bilateral basis, the pricing for which may differ from the prevailing derived market price for a variety of reasons. In these
circumstances an adjustment is made to bring the initial fair value of the contract to zero at inception. The adjustment is called a ‘day
one’ gain (loss) and is deferred and amortised, based on expected call volumes over the term of the contract. The following table
details the movements and amounts of deferred ‘day one’ gains (losses) included in the fair value of level three electricity swaps and
options:
E. Other
E1. Related party transactions
The majority shareholder of Genesis is the Crown. The Group transacts with Crown-controlled and related entities independently
and on an arm’s-length basis for the following goods and services: royalties, emission obligations, scientific consultancy services,
electricity transmission, postal services, rail services and energy-related products (including electricity derivatives). All transactions
with Crown-controlled and related entities are based on commercial terms and conditions and relevant market drivers.
During the period the Crown received $45.1 million dividends (31 December 2018: $44.4 million) of which $35.4 million was paid in
cash (31 December 2018: $34.9 million) and $9.7 million was paid in shares (31 December 2018: $9.5 million). There were no other
individually significant transactions with the Crown during the period (31 December 2018: nil).
The Group has five significant electricity swap and option contracts with Meridian Energy, a Crown-controlled entity. The period and
profile of the contracts vary between 12.5MW and 150MW, from 1 January 2011 to 31 December 2025. In addition to these contracts
there are a small number of insignificant contracts with Crown-controlled and related entities.
Approximately 17.0 per cent of the value of electricity derivative assets and approximately 66.6 per cent of the value of electricity
derivative liabilities held at the reporting date were held with Crown-controlled and related entities (30 June 2019: 36.4 per cent and
54.1 per cent respectively). The contracts expire at various times; the latest expiry date is December 2025.
E2. Commitments
As at 31 December 2019 the Group had $58.0 million of capital commitments (30 June 2019: $42.0 million). In addition to this on
23 October 2019 the Group committed to a 12-year property lease, which will be available for use in October 2020. If the lease had
commenced on the date the contract was signed, the Group would have recognised an additional $23.9 million lease asset and $31.3
million lease liability. These amounts are indicative values only given the incremental borrowing rate will not be known until the
commencement of the lease in October 2020.
E3. Contingent assets and liabilities
No new contingent assets or liabilities have arisen since 30 June 2019 and there has been no change in the contingent liabilities
disclosed in the 2019 Annual Report, other than a further six months of gas being purchased under the gas supply agreement
disclosed in note G5 of the 2019 Annual Report. At this stage in the process Genesis is confident of a favourable outcome, however,
should there be an adverse outcome from the proceedings potentially up to 961,000 units may need to be transferred.
E4. Subsequent events
There have been no significant events subsequent to balance date other than the declaration of a dividend on 20 February 2020. Refer
to note C3 for details.
6 months ended
31 Dec 2019
unaudited
$ million
Year ended
30 Jun 2019
audited
$ million
Opening balance 134.5 69.4
New derivatives-78.6
Amortisation of existing derivatives (5.4) (13.5)
Closing balance 129.1 134.5
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
19
GENESIS INTERIM REPORT 2020
Independent review report to the shareholders of Genesis Energy Limited
We have reviewed the condensed consolidated interim financial statements (‘the financial statements’) of Genesis Energy Limited
(‘the Company’) and its subsidiaries (‘the Group’) which comprise the consolidated balance sheet as at 31 December 2019, and the
consolidated comprehensive income statement, consolidated statement of changes in equity and consolidated cash flow statement
for the six months ended on that date, and a summary of significant accounting policies and other explanatory information on pages 5
to 18.
This report is made solely to the Company’s Shareholders, as a body. Our review has been undertaken so that we might state to the
Company’s Shareholders those matters we are required to state to them in a review report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility to anyone other than the Company’s Shareholders as a body, for
our engagement, for this report, or for the opinions we have formed.
Board of Directors’ Responsibilities
The Board of Directors are responsible for the preparation and fair presentation of the financial statements, in accordance with NZ IAS
34 Interim Financial Reporting and IAS 34 Interim Financial Reporting and for such internal control as the Board of Directors determine
is necessary to enable the preparation and fair presentation of the financial statements that are free from material misstatement,
whether due to fraud or error.
The Board of Directors are also responsible for the publication of the financial statements, whether in printed or electronic form.
Our Responsibilities
The Auditor-General is the auditor of the Group pursuant to section 5(1)(f) and section 14 of the Public Audit Act 2001. Pursuant to
section 32 of the Public Audit Act 2001, the Auditor-General has appointed me, Bryce Henderson, using the staff and resources of
Deloitte Limited, to carry out the annual audit of the Group on his behalf.
Our responsibility is to express a conclusion on the financial statements based on our review. We conducted our review in accordance
with NZ SRE 2410 Review of Financial Statements Performed by the Independent Auditor of the Entity (‘NZ SRE 2410’). NZ SRE 2410
requires us to conclude whether anything has come to our attention that causes us to believe that the financial statements, taken
as a whole, are not prepared, in all material respects, in accordance with NZ IAS 34 Interim Financial Reporting and IAS 34 Interim
Financial Reporting. As the auditor of Genesis Energy Limited, NZ SRE 2410 requires that we comply with the ethical requirements
relevant to the audit of the annual financial statements.
A review of the financial statements in accordance with NZ SRE 2410 is a limited assurance engagement. The auditor performs
procedures, primarily consisting of making enquiries, primarily of persons responsible for financial and accounting matters, and
applying analytical and other review procedures.
The procedures performed in a review are substantially less than those performed in an audit conducted in accordance with
International Standards on Auditing (New Zealand). Accordingly we do not express an audit opinion on these financial statements.
We did not evaluate the security and controls over the electronic publication of the financial statements.
In addition to this review and the audit of the Group’s annual financial statements, we have carried out assignments in the areas of
trustee reporting, scrutineer’s notice, secretarial services for the corporate tax payer group, and a whistle blower hotline service which
are compatible with those independence requirements. These services have not impaired our independence as auditor of the Group.
In addition to these assignments, partners and employees of our firm deal with the Group on normal terms within the ordinary course
of trading activities of the Group. Other than these assignments and trading activities, we have no relationship with, or interests in the
Group.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the financial statements of the Group do
not present fairly, in all material respects, the financial position of the Group as at 31 December 2019 and its financial performance
and cash flows for the six months ended on that date in accordance with NZ IAS 34 Interim Financial Reporting and IAS 34 Interim
Financial Reporting.
20 February 2020
Bryce Henderson
for Deloitte Limited
On behalf of the Auditor-General
Auckland, New Zealand
Pūrongo Arotake Motuhake
INDEPENDENT REVIEW REPORT
Head/Registered Office
Genesis Energy Building
660 Great South Road,
Greenlane, Auckland 1051
P: 64 9 580 2094
F: 64 9 580 4894
E: info@genesisenergy.co.nz
investor.relations@genesisenergy.co.nz
board@genesisenergy.co.nz
W: genesisenergy.co.nz
energyonline.co.nz
---
Results announcement
Results for announcement to the market
Name of issuer Genesis Energy Limited (GNE)
Reporting Period 6 months to 31 December 2019
Previous Reporting Period 6 months to 31 December 2018
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$1,334.2 (2%)
Total Revenue $1,334.2 (2%)
Net profit/(loss) from
continuing operations
$9.2 (81.4%)
Total net profit/(loss) $9.2 (81.4%)
Interim/Final Dividend
Amount per Quoted Equity
Security
$ 0.08525000
Imputed amount per Quoted
Equity Security
$0.02652200
Record Date 18/03/2020
Dividend Payment Date 01/04/2020
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$1.66 $1.74
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Please refer to the FY2020 Interim Report attached to this
announcement for Genesis’ audited interim financial statements.
Authority for this announcement
Name of person authorised
to make this announcement
Cameron Parker
Contact person for this
announcement
Cameron Parker
Contact phone number
+64 9 951 9311
Contact email address cameron.parker@genesisenegy.co.nz
Date of release through MAP 21/02/2020
Audited financial statements accompany this announcement.
---
Distribution Notice
Please note: all cash amounts in this form should be provided to 8 decimal places
Section 1: Issuer information
Name of issuer Genesis Energy Limited
Financial product name/description Ordinary Shares
NZX ticker code GNE
ISIN (If unknown, check on NZX
website)
NZGNEE0001S7
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year Quarterly
Half Year X Special
DRP applies X
Record date 18/03/2020
Ex-Date (one business day before the
Record Date)
17/03/2020
Payment date (and allotment date for
DRP)
01/04/2020
Total monies associated with the
distribution
1
$87,759,968.18
Source of distribution (for example,
retained earnings)
Retained Earnings
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution
2
$0.11177200
Gross taxable amount
3
$0.11177200
Total cash distribution
4
$0.08525000
Excluded amount (applicable to listed
PIEs)
$0.00000000
Supplementary distribution amount $0.0120350
Section 3: Imputation credits and Resident Withholding Tax
5
Is the distribution imputed Fully imputed
Partial imputation
1
Continuous issuers should indicate that this is based on the number of units on issue at the date of the form
2
“Gross distribution” is the total cash distribution plus the amount of imputation credits, per financial product, before the deduction of
Resident W ithholding Tax (RWT).
3
“Gross taxable amount” is the gross distribution minus any excluded income.
4
“Total cash distribution” is the cash distribution excluding imputation credits, per financial product, before the deduction of RW T.
This should include any excluded amounts, where applicable to listed PIEs.
5
The imputation credits plus the RWT amount is 33% of the gross taxable amount for the purposes of this form. If the distribution is
fully imputed the imputation credits will be 28% of the gross taxable amount with remaining 5% being RWT. This does not constitute
advice as to whether or not RWT needs to be withheld.
No imputation
If fully or partially imputed, please
state imputation rate as % applied
6
80%
Imputation tax credits per financial
product
$0.0265220
Resident Withholding Tax per
financial product
$0.0103628
Section 4: Distribution re-investment plan (if applicable)
DRP % discount (if any)
2.5%
Start date and end date for
determining market price for DRP
17/03/2020 23/03/2020
Date strike price to be announced (if
not available at this time)
24/03/2020
Specify source of financial products to
be issued under DRP programme
(new issue or to be bought on market)
New Issue
DRP strike price per financial product
$
Last date to submit a participation
notice for this distribution in
accordance with DRP participation
terms
19/03/2020
Section 5: Authority for this announcement
Name of person authorised to make
this announcement
Cameron Parker
Contact person for this
announcement
Cameron Parker
Contact phone number +64 9 951 9311
Contact email address cameron.parker@genesisenegy.co.nz
Date of release through MAP 21/02/2020
6
Calculated as (imputation credits/gross taxable amount) x 100. Fully imputed dividends will be 28% as a % rate applied.
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.
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