- Genesis Energy held its ASM on Friday (14 October 2022)
- It upgraded its EBITDA guidance for FY23 on the basis of Q1 performance
- It expects an EBITDA of NZ$500 million, up from NZ$440 million last year
New Zealand-based utility company, Genesis Energy (NZX: GNE), announced on Friday that it has upgraded its EBITDA guidance by almost 10% for FY23 due to higher inflows into its hydro dams in Q1.
At its annual shareholders’ meeting (ASM) on Friday (14 October 2022), the company disclosed that favourable trading conditions in the first quarter of FY23 due to hydro inflows and thermal generation had led the EBITDA performance to be higher than expected.
The company said it was aiming for an EBITDA of NZ$500 million for FY23, up from the previous guidance of NZ$455 million. Its last year’s EBITDA was NZ$440 million.
The company further said in the quarter, carbon emissions also declined by almost 50% due to lower thermal generation relative to the first quarter of FY21.
It also disclosed that its net profit after tax (NPAT) was NZ$222 million, up from NZ$32 million in FY21. The big jump in profits, as per the company, was due to the revaluation of financial contracts.
Further, Genesis declared that its meaningful purpose was to empower New Zealand’s sustainable future. Its aim is to help the government in NZ’s energy transition. It said that FY22’s results highlighted that the company represented a business with momentum and was focused, disciplined, and delivered on commitment.
While Barbara Chapman, chairman of the company, acknowledged the contribution of outgoing CEO, Marc England, she announced that Malcolm Johns would be the company’s new chief executive. He will take over the leadership role on 13 March 2023. According to the company release, Johns is currently chief executive officer of Christchurch Airport and has held several governance roles in NZ’s transport and tourism sectors.
Six years ago, when England became CEO, Genesis had an EBITDA of NZ$335 million.
Chapman said that there had been a 30% jump in EBITDA to NZ$440 million in FY22, and the company had delivered an annualised return of over 10.3% to the shareholders.