Genesis Energy Limited Interim Report 2024
Genesis Energy reported a decrease in EBITDAF by 32% and Net Profit After Tax (NPAT) by 74% for the first half of FY24 compared to the same period last year.
The interim dividend per share has been reduced to 7.00 cents, down from 8.80 cents in the previous comparable period.
The company experienced increased operating expenses by 16%, attributed to digital platform investments and inflationary pressures.
Genesis Energy's customer base grew by 2.0%, adding nearly 9,500 customers during the half.
The company has made progress on its Gen35 strategy, including financial close on a 63 MW solar farm at Lauriston and the commencement of the billing platform upgrade.
Hydro inflows were lower, and the extended outage of Huntly Power Station Unit 5 increased generation costs, impacting gross margin.
Adjusted Net Debt decreased slightly, and the company maintains a Net Debt/EBITDAF ratio within its target range.
Genesis Energy is focusing on renewable energy investments, including solar and battery storage, and exploring biomass as a sustainable fuel option for Huntly Power Station.
The company has initiated a review of its retail operating model, expecting a reduction of around 200 roles across FY24 and FY25.
FY24 EBITDAF guidance is around $430 million, subject to hydrological conditions and gas availability.
This announcement is a summary of the company approved ASX announcement on 21/2/2024 and is based on facts.