Genesis Energy shares drop on FY26 outlook
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More news: Genesis Energy shares slumped in morning trade after the energy retailer recorded a rise in full-year profit but guided for lower earnings in the 2026 financial year.
Genesis shares were down 3.2% to $2.12 at 11:15am AEST.
Genesis Energy notches 29% lift in full-year profit, guides lower FY26 earnings
The news: New Zealand energy retailer Genesis Energy recorded a 29% leap in full-year net profit after tax to NZD169.1 million ($152.6 million), as the company battled "high volatility across the energy sector" during the 12-month period.
The numbers: Full-year EBITDAF of NZD470.4 million marked a 14% uptick year on year. The result was above the company's guidance NZD460 million, which was downgraded last year from NZD500 million.
The ASX- and NZX-listed company, which is 51% government owned, has guided for EBITDAF of NZD430 million to NZD460 million in FY26.
Genesis will pay total dividends of 14.3 NZ cents per share, up from 14 NZ cents last year.
The context: Genesis said the year was marked by declining gas availability, low hydrology and increased reliance on thermal generation, which tested the resilience of the sector.
The company said its Huntly Power Station played a central role in maintaining national energy security during the period. The site helped enhanced Genesis' earnings resilience during both wet and dry spells, it said.
The financial result was supported by higher wholesale electricity prices, the contribution of Ecotricity following its acquisition last November, and higher transmission and distribution costs passed through to customers in line with regulatory requirements.
Profit was boosted by higher-than-expected electricity usage during winter 2024, cost outs and valuation changes, the company said.
The source: ASX
