Power utility company Genesis Energy [ASX:GNE] rose steadily in share price this morning, having presented its highlights for the second quarter of FY23 — the particular achievement of working off favourable market conditions resonating with shareholders.
Genesis’s rose more than 3% this morning, worth $2.61 at the time of writing.
So far, in 2023, the GNE share price has been boosted more than 7%:
www.TradingView.com
Genesis’ Q2 FY23 Performance
First thing Monday morning, Genesis Energy presented a market release pertaining to its second quarter performance of FY23, touting favourable market conditions, reduced emissions, and reduced portfolio costs.
Investors were responding well to the company’s latest update, placing the GNE share price higher by more than 3% after hearing the news.
Genesis reported that its customer numbers continued to grow in Q2, increasing by 2.5%.
Netbacks were also noted to have grown across electricity, gas, and LPG.
However, kupe production was lower, which the company put down to a scheduled maintenance outage during the Christmas period.
The main Q2 highlights were as follows:
- Net customer churn was at 11.7%, a 0.9% decrease quarter-on-quarter (QoQ)
- Total customers were 481,000, a 2.5% increase QoQ
- Gas netback increased 14.2% QoQ, with $17.15/GJ
- Renewable generation was 980 GWh, a 50% increase QoQ
- Kupe gas sales decreased 1.2 PJ QoQ (at 1.8 PJ)
- Kupe LPG sales went down 4.7 kt QoQ (at 7.8 kt)
- Realised oil price (NZD) was $110.80/bbl, which came out $20/bbl higher QoQ
Interestingly, while many miners in the energy industry have been struggling against higher-than-usual rainfall, Genesis was able to use the unseasonal rainfall this last quarter to its advantage, translating to its hydro generation increasing by 327 GWh.
As a result, hydro storage across all of the company’s catchments are continuing to track well above average.
Genesis said that despite short-term wholesale prices declining (often hitting below $50/MWh through November to December), it was able to ‘flex down’ higher costs in thermal generation during low price periods.
The company’s Interim Chief Executive, Tracey Hickman, stated:
‘The past quarter demonstrated Genesis’ ability respond to market conditions through flexible generation at Huntly. Emissions were 52% lower than the same period last year. We continued to grow customer numbers while maintaining high levels of loyalty and satisfaction.’
Source: GNE
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Regards,
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For Money Morning
