GNE
29/07/2015 08:45
QUARTER
PRICE SENSITIVE
REL: 0845 HRS Genesis Energy Limited (NS)
QUARTER: GNE: Genesis Energy Q4 2015 Operational Report
Stabilised electricity customer numbers and efficient generation portfolio
management were the key themes of Genesis Energy's operating performance in
the three months to the end of June 2015 (Q4).
Genesis Energy experienced increased seasonal usage per customer and worked
hard throughout Q4 to stabilise its mass market electricity and gas customer
numbers in spite of elevated industry switching rates. In addition, the
Company managed significant changes in hydro storage during Q4 and reacted to
lower wholesale electricity prices by increasing its renewable generation
output and reducing fuel costs.
Total electricity customers of 516,574 at 30 June 2015 reflected a modest
increase over the last three months and a stabilisation of the Company's
electricity customer numbers. Gains in Energy Online connections offset a
reduction in Genesis Energy connections, while total electricity connections
are now 1% lower than a year ago, equating to a 26% market share. Gas
customers reduced by 500 accounts or 0.5% over the last three months to
106,263 customers.
Colder weather and increased usage per household in May and June drove up
total retail electricity sales volumes by 5% to 1,445 GWh in Q4. Time of Use
(TOU) volumes continued to increase year on year (up 38% versus Q3 2014).
Total retail gas sales volumes of 1.9PJ were 6% higher in Q4 compared to the
same quarter last year due to an increase in both mass market and TOU sales
volumes. This also reflected increased usage per mass market customer (+10%
year on year), offsetting a reduction in customer connections. LPG sales
increased 15% to 599 tonnes based on 13,839 LPG customers at 30 June 2015.
In the generation market, a mixture of hydrological conditions was dominated
by heavy inflows to finish the quarter and achieve above average hydro
storage levels. As a result the average wholesale electricity price received
for Q4 at the Huntly node was $61.23/MWh, 14% lower than Q4 2014.
The Company generated 1,657GWh of electricity in Q4, down 10% compared to a
year ago, reflecting the lower prices in the second half of the quarter when
utilisation of thermal generation declined. The coal and gas-fired Rankine
units at Huntly were only used on 11 days in May and 7 in June, and coal
generation was 136GWh, 63% lower than in Q4 2014. Renewable generation of
818GWh was up 13% year on year, positively impacting margins due to lower
fuel costs. Despite the lower coal consumption, the coal stockpile of 721,000
tonnes at 30 June 2015 was 25% lower than at the end of Q4 2014.
Genesis Energy's share of oil production in Q4 from the Kupe Oil and Gas
Field was 127,000 barrels, 13% lower than Q4 2014, while Kupe gas sales of 2
PJ were in line with last year. Total oil production of 502,000 barrels in
FY2015 was 6% lower than FY2014 but 15% ahead of forecast due to the Kupe
Joint Venture partners agreeing to increase production to offset lower
international oil prices.
Genesis Energy will announce its financial results for the 12 months ended 30
June 2015 on Tuesday 25 August 2015.
End CA:00267560 For:GNE Type:QUARTER Time:2015-07-29 08:45:37
