Genesis Energy’s profit jumped to $169m for the June year, up from $131m a year earlier. The company said the lift reflected higher output, lower costs and valuation changes.
Ebitdaf came in at $470m, $10m above its forecast, Huntly Power Station was again highlighted as a key factor in both financial performance and energy stability.
Financial Performance Driven by Higher Output and Lower Costs
The company’s normalised earnings before interest, tax, depreciation, amortisation and financial instruments (ebitdaf) reached $470 million, which was $10m ahead of guidance and up 14% on the previous year. The board also declared a final dividend of 7.17 cents per share, bringing the total payout to 14.3 cps, up 2% year-on-year.
Genesis attributed the result to a combination of higher output and lower costs. The company noted that last winter it had generated 30% more electricity than planned, stepping up production during a period when a gas shortage and low hydro lake levels had driven a sharp spike in wholesale prices.
Chief executive Malcolm Johns highlighted the value of the company’s diverse generation portfolio, which includes hydro schemes capable of delivering between 2.6 and 3 terawatt hours annually.
Energy Sector Resilience Tested by Market Volatility
The company said the past year put the sector under pressure. Genesis pointed to “declining gas availability, low hydrology and increased reliance on thermal generation [which] tested the resilience of the sector.”
It said its diversified portfolio provided the necessary flexibility. “Genesis responded by flexing its portfolio to support both its customers and the wider market, with HPS playing a central role in maintaining national energy security,” it said.
Huntly Power Station Reinforces Supply Security
Huntly Power Station was again highlighted as a backbone of New Zealand’s power system. Genesis, along with Mercury, Meridian and Contact, agreed on arrangements to guarantee reserve generation and fuel supply through the site. Johns said, “Huntly once again played a critical role in ensuring earnings resilience and security of supply for New Zealand.”
He added that the coal- and gas-fired station was increasingly used to support wind generation. “Energy security is required across minutes, hours, days, weeks and months, and HPS has asset and fuel flexibility to monetise the full spectrum,” he said.
Genesis has set an ebitdaf guidance range of $430m to $460m for the 2026 financial year, though this outlook remains contingent on hydrological conditions, gas availability, plant reliability, and stable market settings.