Genesis Energy Limited logo

FY23 Q3 Performance Report

Quarterly Update20 April 2023GNEUtilities

MARKET RELEASE

Date: 21 April 2023

NZX: GNE / ASX: GNE

FY23 Q3 Performance Report


Favourable wholesale conditions continued in FY23 Q3 resulting in lower emissions and portfolio

generation costs. Customer churn remained low, while netbacks increased across electricity, gas and

LPG.


Malcolm Johns, Chief Executive said, “Genesis supported our customers through the Auckland floods

and Cyclone Gabrielle. High hydro levels contributed to a 44% reduction in generation emissions,

relative to the same period last year. During a busy quarter, we progressed key strategic initiatives,

including a successful biomass trial and securing our first solar site.”


Genesis’ FY23 Q3 Performance Report is attached.




ENDS



For investor relations enquiries, please contact:

Tim McSweeney

GM Investor Relations & Market Risk

M: 027 200 5548


For media enquiries, please contact:

Chris Mirams

GM Communications & Media

M: 027 246 1221









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 and Frank and is one of New Zealand’s largest

energy retailers 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 $NZ2.8 billion during the 12 months ended 30 June 2022. More information

can be found at www.genesisenergy.co.nz

---

Genesis Energy Limited FY23 Q2 Performance Report 1.
FY23 Q3

Performance Report

21April 2023

FY23 Q3 Performance Highlights
Retail

12.0%

Net Customer Churn

WholesaleKupe

2

Kupe Gas Sales

0.8ppt decrease on pcp

1

479,942

Total Customers

2.6% increase on pcp

$1,178/t

LPG Netback

22.7% increase on pcp

764 GWh

Renewable Generation

36%increase on pcp

44% down

Generation Emissions

Relative to pcp

Portfolio Generation Costs

$16decrease on pcp

$94.30/bbl.

$10.80/bbl. higher than pcp

1Pcp refers to Q3 FY22 unless otherwise stated.

2Refers to Genesis’ 46% share.

Genesis Energy Limited FY23 Q3 Performance Report 2.

2.1 PJ

0.7 PJ decrease on pcp

Kupe LPG Sales

9.0 kt

4.1 kt decrease on pcp

Oil Sales Price (NZD)

$45/MWh

Genesis Energy Limited FY23 Q3 Performance Report 3.
➢Genesis supported our customers through the Auckland floods

and Cyclone Gabrielle, while supporting energy supply in the

Hawke’s Bay region through generation at Waikaremoana

Power Scheme.

➢Customer numbers remained steady during FY23 Q3 (down

0.3%), with growth in multi-fuel customers offset by declines in

single fuel customers.

➢Netbacks across all energy types continued to grow, following

increases to residential pricing in the quarter. Electricity

increased by 9.6% and LPG increased by 22.7%, relative to

pcp.

➢Favourable hydro conditions meant that renewable generation

was up 202 GWh. Genesis’ lakes retained a high level of

storage and closed the quarter at 153% of average.

➢Kupe production was lower than the pcp, as field production

continued to decline. Oil sales prices improved, up $10.80/bbl.

PerformanceHighlights

HYDROLOGY (GWH)

Q3 FY23Q3 FY22

Hydro

Generation

762562

Hydro

Inflows

676553

Closing

Storage

491

(153% of ave.)

421

(132% of ave.)

Genesis Energy Limited FY23 Q3 Performance Report 4.
Operating Performance

All prices in this report are unaudited and subject to change.

Q3 FY23Q3 FY22VarianceMar YTD FY23Mar YTD FY22

ELECTRICITY GROSS MARGINVolumeRate per unit$m VolumeRate per unit$m VolumeRate per unit$mVolumeRate per unit$m VolumeRate per unit$m

Retail Resi Electricity580 GWh$284/MWh164.8 554 GWh$282/MWh155.9 27 GWh$2/MWh8.8 2,115 GWh$273/MWh578.2 2,120 GWh$272/MWh575.6

Retail SME Electricity234 GWh$252/MWh58.9 244 GWh$239/MWh58.1 (10)GWh$13/MWh0.8 736 GWh$250/MWh183.7 762 GWh$234/MWh178.3

Retail C&I Electricity442 GWh$159/MWh70.2 462 GWh$131/MWh60.6 (20)GWh$27/MWh9.6 1,330 GWh$157/MWh208.8 1,499 GWh$137/MWh205.7

Total Retail Sales1,256 GWh$234/MWh293.9 1,259 GWh$218/MWh274.7 (3)GWh$16/MWh19.2 4,181 GWh$232/MWh970.8 4,380 GWh$219/MWh959.7

Wholesale Electricity Sales1,452 GWh$146/MWh212.4 1,552 GWh$180/MWh279.0 (100)GWh-$33/MWh(66.6)4,365 GWh$94/MWh412.4 4,658 GWh$147/MWh682.9

Generation Costs -Thermal688 GWh$95/MWh65.4 989 GWh$95/MWh93.9 (302)GWh$/MWh(28.5)1,561 GWh$95/MWh148.2 2,670 GWh$97/MWh260.0

Generation Costs -Renewable764 GWh--563 GWh--202 GWh--2,804 GWh--1,988 GWh--

Generation Costs -Total1,452 GWh$45/MWh65.4 1,552 GWh$60/MWh93.9 (100)GWh-$15/MWh(28.5)4,365 GWh$34/MWh148.2 4,658 GWh$56/MWh260.0

Retail Purchases

Retail Purchases1,317 GWh$143/MWh188.3 1,337 GWh$177/MWh236.4 (20)GWh-$34/MWh(48.1)4,392 GWh$88/MWh384.4 4,609 GWh$136/MWh628.6

Transmission and Distribution Costs119.3 115.2 4.1 392.6 389.5

GAS GROSS MARGINVolumeRate per unit$m VolumeRate per unit$m VolumeRate per unit$m VolumeRate per unit$m VolumeRate per unit$m

Retail Resi Gas0.3 PJ$62.2/GJ20.0 0.3 PJ$57.2/GJ17.9 0.0 PJ$5.0/GJ2.0 1.8 PJ$42.5/GJ75.9 1.9 PJ$37.5/GJ71.9

Retail SME Gas0.2 PJ$31.3/GJ7.2 0.2 PJ$27.3/GJ6.8 (0.0) PJ$4.0/GJ0.4 1.0 PJ$27.8/GJ27.2 1.1 PJ$21.4/GJ23.0

Retail C&I Gas0.7 PJ$20.8/GJ15.3 0.7 PJ$19.7/GJ14.4 0.0 PJ$1.1/GJ0.9 2.5 PJ$20.5/GJ51.0 2.5 PJ$15.8/GJ39.7

Total Retail Sales1.3 PJ$32.9/GJ42.5 1.3 PJ$30.2/GJ39.2 (0.0) PJ$2.7/GJ3.3 5.3 PJ$29.3/GJ154.1 5.5 PJ$24.5/GJ134.7

Wholesale Sales0.4 PJ$7.5/GJ3.3 1.0 PJ$7.8/GJ7.8 (0.6) PJ-$0.4/GJ(4.5)2.7 PJ$8.0/GJ21.9 7.1 PJ$10.7/GJ76.4

Cost of Gas1.7 PJ$9.3/GJ16.2 2.3 PJ$9.1/GJ21.0 (0.6) PJ$0.2/GJ(4.8)8.0 PJ$9.1/GJ72.5 12.6 PJ$10.1/GJ128.1

Transmission and Distribution Costs16.9 14.5 2.4 58.1 59.3

LPG GROSS MARGINVolumeRate per unit$m VolumeRate per unit$m VolumeRate per unit$m VolumeRate per unit$m VolumeRate per unit$m

Bottled LPG Sales3.5 kt$3,235/t11.3 3.2 kt$2,776/t9.0 0.3 kt$459/t2.3 14.1 kt$2,853/t40.2 13.7 kt$2,498/t34.1

SME & Other Bulk LPG Sales4.7 kt$1,741/t8.3 5.5 kt$1,549/t8.5 -0.8 kt$192/t(0.3)18.8 kt$1,659/t31.2 19.0 kt$1,530/t29.1

Total Retail Sales8.2 kt$2,374/t19.5 8.7 kt$2,002/t17.5 -0.5 kt$371/t2.1 32.9 kt$2,171/t71.4 32.7 kt$1,934/t63.2

Wholesale LPG Sales2.9 kt$1,111/t3.2 4.5 kt$1,052/t4.8 -1.7 kt$59/t(1.6)5.5 kt$1,114/t6.2 12.9 kt$1,136/t14.6

LPG Cost11.1 kt$825/t9.2 13.3 kt$748/t9.9 -2.2 kt$76/t(0.8)38.4 kt$922/t35.4 45.6 kt$784/t35.7

KUPE GROSS MARGINVolumeRate per unit$m VolumeRate per unit$m VolumeRate per unit$m VolumeRate per unit$m VolumeRate per unit$m

Oil Sales82 Kbbl$94.3/bbl7.7 80 Kbbl$83.6/bbl6.7 1.8 Kbbl$10.8/bbl1.0 176 Kbbl$109.6/bbl19.2 227 Kbbl$89.8/bbl20.4

Gas Sales2.1 PJ$7.3/GJ15.7 2.9 PJ$7.2/GJ20.6 (0.7)PJ$0.1/GJ(4.9)6.5 PJ$7.3/GJ47.0 8.3 PJ$7.1/GJ58.7

LPG Sales9.0 kt$455/t4.1 11.7 kt$450/t5.3 (2.7)Kt$5/t(1.2)27.5 kt$453/t12.4 35.5 kt$450/t16.0

Genesis Energy Limited FY23 Q3 Performance Report 5.
Operating Metrics

All prices in this report are unaudited and subject to change.

RETAIL SEGMENTQ3 FY23Q3 FY22% ChangeVar.Q2 FY23% ChangeVar.YTD FY23YTD FY22

RETAIL

Brand Net Promoter Score -Genesis Energy2629(10.3%)-32218.2% 4

Interaction Net Promoter Score -Genesis4653(13.2%)-748(4.2%)-2

Gross Customer Churn (3 month rolling average, %)18.2% 20.2% (9.6%)(1.9%)18.7% (2.3%)(0.4%)

Net Customer Churn (3 month rolling average, %)12.0% 12.8% (6.5%)(0.8%)11.7% 2.6% 0.3%

Electricity Netback ($/MWh)$129.01 $117.71 9.6%$11.29 $118.93 8.5%$10.08 $128.67 $122.56

Gas Netback ($/GJ)$18.31 $17.48 4.7%$0.82 $17.15 6.7%$1.15 $17.25 $13.95

LPG Netback ($/t)$1,177.89 $962.01 22.7%$217.86 $1,175.88 0.2%$2.01 $1,153.79 $1,049.24

CUSTOMER NUMBERS

Customers > 1 Fuel140,817 130,838 7.6%9,979 140,587 0.2%230 140,817 130,838

Electricity Only Customers291,864 287,939 1.4%3,925 293,040 (0.4%)(1,176)291,864 287,939

Gas Only Customers12,417 14,465 (14.2%)(2,048)12,820 (3.1%)(403)12,417 14,465

LPG Only Customers34,844 34,344 1.5%500 34,838 0.0%6 34,844 34,344

Total Customers479,942 467,586 2.6%12,356 481,285 (0.3%)(1,343)479,942 467,586

Electricity ICPs Active-Occupied492,618 477,496 3.2%15,122 493,229 (0.1%)(611)492,618 477,496

Gas ICPs Active-Occupied107,855 104,921 2.8%2,934 108,593 (0.7%)(738)107,855 104,921

LPG Customer Connections89,688 83,834 7.0%5,854 89,356 0.4%332 89,688 83,834

Total ICPs690,161 666,251 3.6%23,910 691,178 (0.1%)(1,017)690,161 666,251

WHOLESALE SEGMENTQ3 FY23Q3 FY22% ChangeVar.Q2 FY23% ChangeVar.YTD FY23YTD FY22

GENERATION

Generation Emissions (ktCO2)342 611 (44.0%)(269)119 186.7% 223 784 1,518

Generation Carbon Intensity (tCO2/GWh)236 394 (40.1%)(158)99 137.7% 137 180 326

Rankine Output (GWh)129 331 (61.0%)(202)49 165.4% 80 329 736

Rankines Fueled by Coal (%)43% 85% (48.8%)(41%)13% 233.3% 30% 24% 83%

Total Gas Purchases (PJ)6.9 7.9 (12.8%)(1.0)5.3 29.9%1.6 20.6 28.6

Total Coal Purchases (PJ)0.1 3.0 (97.8%)(2.9)0.6 (89.0%)(0.5)3.1 21.1

Electricity CFD Purchases -Wholesale (GWh)209 433 (51.7%)(224)434 (51.8%)(225)1,031 1,625

Electricity CFD Purchase Price -Wholesale ($/MWh)$106 $116 (9.2%)($11)$114 (7.4%)($8)$114 $115

Electricity CFD Sales -Wholesale (GWh)422 681 (38.0%)(259)468 (9.8%)(46)1,608 2,158

Electricity CFD Sale Price -Wholesale ($/MWh)$135 $119 13.9%$17 $110 22.9%$25 $132 $127

Gas Used In Internal Generation (PJ)5.1 5.5 (7.4%)(0.4)2.0 149.7% 3.112.6 16.0

Weighted Average Gas Burn Cost ($/GJ)$9.6 $9.4 1.8% $0.2 $10.3 (6.5%)($0.7)$9.5 $10.6

Coal Used In Internal Generation (PJ) 0.7 3.4 (78.6%)(2.5)0.1 651.0% 0.6 1.1 6.9

Weighted Average Coal Burn Cost ($/GJ)$7.9 $8.0 (0.7%)($0.1)$8.0 (0.8%)($0.1)$7.9 $7.8

Coal Stockpile -closing balance (kilotonnes)968 817 18.4% 150 998 (3.0%)(30)

POWER PURCHASE AGREEMENTS

Wind (GWh)103 96 6.6% 6 110 (6.9%)(8)330 339

Average Price Received for PPA -GWAP ($/MWh)$101.71 $140.75 (27.7%)($39.04)$34.21 197.3% $67.50 $61.28 $101.77

Genesis Energy Limited FY23 Q3 Performance Report 6.
Operating Metrics

All prices in this report are unaudited and subject to change.

KUPE SEGMENTQ3 FY23Q3 FY22% ChangeVar.Q2 FY23% ChangeVar.YTD FY23YTD FY22

KUPE

Oil Production (kbbl)52 75 (30.5%)(23)44 18.3%8 158 227

Average Brent Crude Oil (USD/bbl)$81.27 $101.41 (19.9%)($20.14)$88.71 (8.4%)($7.44)$90.28 $84.15

LPG Production (kt)9.4 11.9 (21.2%)(2.5)7.6 23.3%1.8 28.4 35.3

LPG Production Yield (t/TJ)4.4 4.2 5.6%0.2 4.3 3.1%0.1 4.3 4.3

OTHERQ3 FY23Q3 FY22% ChangeVar.Q2 FY23% ChangeVar.YTD FY23YTD FY22

CORPORATE

Headcount (FTE)1,233 1,187 3.9%46 1,195 3.2%38 1,233 1,187

Total Recordable Injuries16 9 77.8%7 7 128.6%9 34 31

Genesis Energy Limited FY23 Q3 Performance Report 7.
Appendix: Retail Segment

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ELECTRICITY SALES VOLUMES (GWh)

Quarterly Resi Sales VolumesQuarterly SME Sales Volumes

Quarterly C&I Sales VolumesRolling 12-month Sales Volume (RHS)

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LPG SALES VOLUMES (Tonnes)

Quarterly Bottled LPG Sales VolumesQuarterly Bulk & SME LPG Sales Volume

Rolling 12-month Sales Volume (RHS)

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GAS SALES VOLUME (PJ)

Quarterly Resi Sales VolumesQuarterly SME Sales Volumes

Quarterly C&I Sales VolumesRolling 12-month Sales Volume (RHS)

Genesis Energy Limited FY23 Q3 Performance Report 8.
Appendix: Wholesale Segment

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WAIKAREMOANA STORAGE Vs LONG RUN AVERAGE (GWh)

Long Run Average Storage12 Month Storage

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TEKAPO STORAGE Vs LONG RUN AVERAGE (GWh)

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NEW ZEALAND DAILY STORAGE (ALL GENERATORS, GWh)

Long Run Average Storage12 Month Storage

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5.00

6.00

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8.00

AprMayJunJulAugSepOctNovDecJanFebMar

TONGARIRO GENERATION (GWh/Day)

20 Year Average7 Day Rolling Average

Genesis Energy Limited FY23 Q3 Performance Report 9.
Appendix: Wholesale Segment

$50

$70

$90

$110

$130

$150

$170

$190

$210

$230

$250

Mar-19Mar-20Mar-21Mar-22Mar-23

ASX FUTURES SPOT PRICING ($/MWh)

1-Year Contract2-Year Contract3-Year Contract

0

500

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1,500

2,000

2,500

FY21

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Q2Q3Q4FY22

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GENERATION BY POWER STATION (GWh)

North Island HydroSouth Island HydroHuntly Units 1 to 4 Gas

Huntly Units 1 to 4 CoalHuntly Unit 5Huntly Unit 6

Wind

0

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600

700

800

Apr-22May-22Jun-22Jul-22Aug-22Sep-22Oct-22Nov-22Dec-22Jan-23Feb-23Mar-23

HUNTLY RANKINE UTILISATION (GWh)

Genesis Customers/Portfolio Backup Swaption Partners

Backup Other Retailers/Spot Customers

0%

20%

40%

60%

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100%

$0

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FY21

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PORTFOLIO AND THERMAL FUEL COSTS

Weighted Average Fuel Cost - Thermal ($/MWh)

Weighted Average Fuel Cost - Portfolio ($/MWh)

Renewable Contribution to Total Generation (RHS, %)

Genesis Energy Limited FY23 Q3 Performance Report 10.
Appendix: Kupe Segment

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KUPE GAS SALE VOLUMES (GENESIS SHARE, PJ)

Quarterly Sales VolumeRolling 12 Month Sales Volume (RHS)

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KUPE OIL PRODUCTION VOLUMES (GENESIS SHARE, Kbbl)

Quarterly Production VolumeRolling 12 Month Production Volume (RHS)

$0

$20

$40

$60

$80

$100

$120

$140

AprMayJunJulAugSepOctNovDecJanFebMar

BRENT CRUDE OIL SPOT PRICE (USD/bbl)

12 Months to Mar 2312 Months to Mar 22

Glossary –Performance
Genesis Energy Limited FY23 Q3 Performance Report 11.

Electricity

Retail Sales Residential

Sales of electricity to residential customers

Retail Sales SMESales of electricity to small business customers

Retail Sales C&ISales of electricity to commercial and industrial customers

W holesale SalesSale of generated electricity onto the spot market, excluding PPA settlements and ancillary revenue

Generation Costs Direct generation costs, inclusive of fuels and carbon

Retail PurchasesPurchases of electricity on spot market for retail customers

Transmission and Distribution CostsTotal electricity transmission and distribution costs, connection charges, electricity market levies and meter leasing

Gas

Retail Sales ResidentialSales of gas to residential customers

Retail Sales SMESales of gas to small business customers

Retail Sales C&ISales of gas to commercial and industrial customers

W holesale SalesSales of gas to wholesale customers

Gas PurchasesPurchase of gas for sale (excludes gas used in electricity generation)

Transmission and Distribution CostsTotal gas transmission and distribution costs, gas levies and meter leasing

LPG

BottledLPGSalesRepresents45kgLPGbottlesales

SME&OtherBulkLPGsalesRepresentsSMEandotherbulkandthirdpartydistributors

W holesale LPG SalesSales of LPG to wholesale customers

LPG CostPurchase of LPG for sale

Kupe

Oil SalesSale of crude oil

Gas SalesSale of gas

LPG SalesSale of LPG

Glossary –Operational Metrics
Genesis Energy Limited FY23 Q3 Performance Report 12.

Retail

BrandNetPromoterScoreBasedonsurveyquestion “Howlikelywouldyou betorecommend Genesis/Frank Energyto yourfriendsorfamily?”

InteractionNetPromoterScore

Based on survey question “Based on your recent interaction with Genesis/Frank, how likely would you be to recommendGenesis/Frankto your

family/friends?”

CustomersElectricityand gas customersare defined bysingle customer view,regardless of number ofconnections (ICP’s)

SingleCustomerViewRepresentsuniquecustomerswhichmayhavemultipleICPs

ICPInstallationConnectionPoint, aconnectionpoint thatis bothoccupiedand hasnotbeen disconnected(Active-Occupied)

LPGCustomerConnectionsDefinedasnumberofcustomers

GrossCustomerChurnDefinedasresidential customersinstigatingatraderswitchorhomemove

NetCustomerChurnDefinedasGrossCustomer Churnposthomemovesaves,retentionandacquisitionactivity

Resi,SME,C&IResidential,smallandmediumenterprisesandcommercial&industrialcustomers

B2BBusinesstoBusiness,includingbothSMEandC&I

Netback($/MW h,$/GJ,$/tonne)

Customer EBITDAF by fuel type plus respective fuel purchase cost divided by total fuel sales volumes, stated in native fuel units (excluding corporateallocation

costs andTechnology& Digital cost centre)

Glossary –Operational Metrics
Genesis Energy Limited FY23 Q3 Performance Report 13.

Wholesale

Electricity Financial Contract Purchases –W holesale

(GW h)

Settlement volumes of generation hedge purchases, including exchange traded and OTC contracts. Excludes PPAs, active trading,Financial Transmissions

Rights (FTRs) and Cap/Collar/Floor contracts

Electricity Financial Contract Purchases –W holesale

Price ($/MW h)

Average price paid for Electricity Financial Contract Purchases –W holesale

Electricity Financial Contract Sales –W holesale (GW h)Settlement volumes of generation hedge sales, including exchange traded, OTC contracts and Swaptions. Excludes PPAs, active trading, Financial

Transmissions Rights (FTRs) and Cap/Collar/Floor contracts

Electricity Financial Contract Sales –W holesale Price

($/MW h)

Average price paid for Electricity Financial Contract Sales –W holesale

Generation Emissions Carbon emissions due to electricity generation

Rankine OutputElectricity generated at the Huntly Rankine unit

Rankine’sFuelledbyCoal(%)TheproportionofcoalusedintheRankineunits

WeightedAverage Gas Burn Cost($/GJ)Totalcost ofgas burntdivided bygeneration fromgas firedgeneration, excludingemissions

CoalUsedInInternalGeneration(PJ)Resultshavebeenrevisedtoreflect changesincoalkilotonnesto PJconversionrateandvolume methodology

WeightedAverage CoalBurn Cost($/GJ)Totalcostof coalburntdivided bygenerationfrom coalfired generation,excludingemissions

CoalStockpile–closing balance (Kt)Thecoalstockpile closingbalance intonnesatHuntly Power Station

Powerpurchaseagreements

Wind(GWh)Energypurchasedthroughlongtermagreementswithgenerator

AveragePriceReceivedforGeneration-GW AP

($/MW h)

Pricereceivedatproductionnode.(E.g.W aipipi atWVY1101node)

Corporate

Total RecordableInjuries12-monthrollingTotalRecordableInjuries including LostTimeInjuries, RestrictiveWorkInjuries andMedicalTreatmentInjuries

Headcount(FTE)Based on full time equivalent employees

Kupe

OilProductionProduction of crude oil

OilPricerealised(USD/bbl.)Theunderlyingbenchmarkcrude oilpricethat isusedto setthepricefor crudeoilsales

LPG ProductionProduction of LPG

Investor relations enquiries
Tim McSweeney

GM Investor Relations & Market Risk

+64 27 200 5548

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.