GNE
20/10/2015 13:52
QUARTER
PRICE SENSITIVE
REL: 1352 HRS Genesis Energy Limited (NS)
QUARTER: GNE: Genesis Energy Q1 2016 Performance Report
Genesis Energy continued to stabilise its customer accounts for gas and
electricity, and the colder winter drove up usage per customer in the three
months ended 30 September 2015 ("Q1").
Through a focus on creating compelling customer offerings and improving
service levels, including the launch of a new customer 'app', Genesis Energy
increased total electricity customers to 521,035 at 30 September 2015, up by
1% over the last three months. Energy Online new connections accounted for
75% of the customer account growth. Total customer connections remain 3.5 %
lower than a year ago, however, Genesis Energy still maintained its leading
share of the electricity market by ICPs at 26%.
Gas customers increased by 700 accounts or 0.7% during the last three months
to 107,034 customers. Genesis Energy's share of the gas market, by ICPs,
continues to lead the market at 40%.
A cold winter, particularly in the South Island, resulted in increased usage
per household in August and September with Genesis Energy selling higher
volumes of electricity, natural gas and bottled LPG per customer than the
same three month period last year. Total electricity use per mass market
customer increased 2% and natural gas use was up 9% versus Q1 2015.
Total retail electricity sales volumes were up 7.9% to 1,702 GWh in Q1
compared to the Q1 2015. Time of Use (TOU) volumes continued to increase year
on year (320 GWh compared to 229 GWh). Total retail gas sales volumes of 2.6
PJ were 6.8% higher in Q1 compared to the same quarter last year due to an
increase in both mass market and TOU sales volumes. LPG sales increased 15%
to 1,319 tonnes based on 13,991 LPG customers at 30 September 2015.
Despite the increased demand, high inflows and above average national hydro
storage constrained prices received by Genesis Energy for its generation
volumes. As a result, the average wholesale electricity price received for Q1
at the Huntly node was $54.53/MWh, 15% lower than Q1 2015.
The Company generated 1,729 GWh of electricity in Q1, compared to 1,755 GWh a
year ago, reflecting the lower prices in the second half of the quarter when
utilisation of thermal generation declined. Output from the coal and
gas-fired Rankine units at Huntly was down 38% to 156 GWh and gas generation
was up 1.9% to 751 GWh. The decreased utilisation of the two Rankine units in
winter provided further motive for the August 2015 decision to retire the
remaining Rankine units by the end of December 2018.
The coal stockpile of 728,000 tonnes at 30 September 2015 was down 21%
compared to the end of Q1 2015. Q1 was the last full quarter of coal
deliveries from Solid Energy to Genesis Energy. The final delivery of coal
will be received on 24 October 2015, and from that point, the Company will
fuel Huntly Power Station with a mix of stockpiled coal and contracted
natural gas.
Significant water inflows at the Tongariro catchment enabled the power scheme
to increase its generation 45% in Q1 versus Q1 2015, and resulted in total
renewable generation of 822 GWh being up 7.2% year on year (766 GWh),
positively impacting margins due to lower fuel costs.
Genesis Energy's share of oil production in Q1 from the Kupe Oil and Gas
Field was 126,500 barrels, 4.7% lower than Q1 2015, while Kupe gas sales of
2.1 PJ was up 10% on last year. Total oil sales of 101,900 barrels in Q1 were
43% higher than Q1 2015 due to timing of shipments.
ENDS
For media enquiries, please contact:
Richard Gordon
Public Affairs Manager
Genesis Energy
P: 09 951 9280
M: 021 681 305
For investor relations enquiries, please contact:
Rodney Deacon
Group Manager Strategy and Investor Relations
Genesis Energy
P: 09 571 4970
M: 021 631 074
End CA:00272041 For:GNE Type:QUARTER Time:2015-10-20 13:52:31
