Full Year 2024 Genesis Energy Ltd Earnings Call Transcript
Key Points
- Genesis Energy Ltd (ASX:GNE) successfully delivered all Gen35 strategic objectives for FY24, demonstrating resilience despite challenging conditions.
- The company achieved a 2.7% growth in customer base, showcasing strong brand stability and market presence.
- Genesis Energy Ltd reached financial close for the Lauriston Solar farm, marking a significant step in renewable energy development.
- The company maintained high employee engagement, with scores 6% above New Zealand's benchmark, even amidst structural changes.
- Genesis Energy Ltd's retail business saw improved netback across all segments, with high customer satisfaction and award-winning service.
- EBITDAF decreased by 22% compared to FY23, reflecting the impact of lower hydro generation and gas market challenges.
- Net profit after tax (NPAT) was down to $130 million, influenced by higher operating costs and lower gross margins.
- The company faced significant unplanned outages and a challenging gas market, impacting overall performance.
- Genesis Energy Ltd's reliance on coal increased due to gas shortages, leading to higher emissions and missing FY25 science-based targets.
- The KS-9 drilling campaign outcome was disappointing, affecting the company's gas production and financial performance.
Kia ora, and welcome to Genesis Energy's FY24 results presentation. I am Malcolm Johns, Chief Executive; and I'm joined by Emma Oettli, our Interim CFO. FY24 was challenging but we're delivering our strategy. We were challenged by hydrology, major unplanned outages, and New Zealand's gas shortage.
However, the portfolio showed its resilience with earnings down but defended. We delivered all the Gen35 strategic objectives we said we would in FY24. Retail reset for OpEx growth arrested, more renewables, HFOs, and the Stage 1 battery at Huntly Power Station.
What was already clear to us, but became clear to everybody in 2024 was that energy security is essential even in a high renewables grid. Under current strategy, Genesis can move another 500 megawatts of baseload generation to flexible generation at Huntly Power Station and make it available for energy security by FY28.
Executing our strategy is the fastest and most economic way for New Zealand to deliver greater energy security for winter peaks and dry years with
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