Shareholders of Genesis Energy Ltd (NZX & ASX: GNE) were told that late last quarter and coming into October the company noted a material change in wholesale electricity and fuel market conditions.
This was due to declining hydro storage and a drier outlook, gas field production constraints, increased international coal prices and a falling exchange rate.
The company’s annual general meeting was told this has resulted in elevated wholesale electricity and gas prices, which has led to hydro conservation.
Genesis was being called on to support the gas and electricity markets with our flexible dual fuelled thermal assets – notably the Huntly gas and coal-fired power station.
“Genesis continues to monitor market conditions and will ensure we are able to meet the energy needs of our customers and existing contracts,” the company said.
Following this week’s annual meeting the company said that the issue price of shares issued in lieu of a cash dividend in the final 2018 dividend would be $2.4132 per share.
The AGM presentation showed that the company in FY18 achieved an Ebitdaf of $361 million, up 8% on the previous year and an NPAT of $20 M, which was down 83% due to some revaluations of generation.
The operating cash flow was up 33% to $331 M.