Genesis Energy Limited · NZX:GNE
Genesis Energy — H1 2015 Earnings Presentation
25 slides from Genesis Energy's earnings presentation, 2015
Slide 1: Genesis Energy H1 2015 Results Presentation
GENESIS ENERGY H1 2015 RESULTS GENESIS ENERGY H1 2015 Results Presentation
Slide 2: Disclaimer
GENESIS ENERGY H1 2015 RESULTS DISCLAIMER Genesis Energy has taken reasonable care in compiling this presentation. However, the information is supplied in summary form and is therefore not necessarily complete, and no representation is made as to the accuracy, completeness or reliability of the info
Slide 3: H1 2015 Highlights
GENESIS ENERGY H1 2015 RESULTS H1 2015 HIGHLIGHTS Albert Brantley Chief Executive 3
Slide 4: H1 2015 continued the momentum of the IPO
GENESIS ENERGY H1 2015 RESULTS H1 2015 continued the momentum of the IPO Genesis Energy’s diverse asset portfolio delivered consistent earnings in the face of challenging market conditions • Year on year growth in retail electricity and gas revenues, plus higher generation revenues, were partially o
Slide 5: Strategic Highlights
GENESIS ENERGY H1 2015 RESULTS Strategic Highlights • Genesis Energy improved on its commitment to Health and Safety and achieving a zero harm work place • Signed a four year swaption agreement with Meridian Energy to replace the swaption that expired in 2014 • Agreed an Integrated Services Contract
Slide 6: Wholesale Electricity Market
GENESIS ENERGY H1 2015 RESULTS Daily Average Wholesale Reference Point Prices and Lake Storage - H1 2015 Otahuhu (OTA2201) Benmore (BEN2201) Actual Storage - GWh (RHS) Storage 80 year average (RHS) $200 3500 Wholesale Price ($/MWh) $180 Lake Storage (GWh) 3000 $160 $140 2500 $120 2000 $100 1500 $80
Slide 7: Customer Experience Performance
GENESIS ENERGY H1 2015 RESULTS Cha nge 6 m onths to 31 Dec em ber 2014 2013 % c ha nge $m Electricity Customers 517,492 534,597 -17,105 -3% Gas Customers 108,217 115,613 -7,396 -6% Tota l Cus tom ers ex LPG 6 25,709 6 50,210 - 24,501 - 4% LPG Customers 13,081 10,739 2,342 22% Tota l Cus tom er Ac c
Slide 8: Electricity Customers
GENESIS ENERGY H1 2015 RESULTS Electricity Customers and Market Share Customer Numbers Share of Total Market (RHS) 550,000 30% 540,000 29% 530,000 28% 520,000 27% 510,000 26% Customers by ICP Market Share 500,000 25% 490,000 24% 480,000 23% 470,000 22% 460,000 21% 450,000 20% Electricity Customers S
Slide 9: Retaining Electricity Customers
GENESIS ENERGY H1 2015 RESULTS Genesis Energy vs. Industry Electricity Customer Switching 26% 24% 22% 20% % annualised 18% 16% 14% Retaining 12% 10% Electricity Customers Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan
Slide 10: Gas Customers
GENESIS ENERGY H1 2015 RESULTS Natural Gas Customers and Market Share Customer Numbers Share of Total Market (RHS) 118,000 45% 116,000 44% 114,000 43% 112,000 42% Customers by ICP 110,000 41% Market Share 108,000 40% 106,000 39% 104,000 38% 102,000 37% Gas Customers 100,000 36% Source: Company data,
Slide 11: Generation Performance
GENESIS ENERGY H1 2015 RESULTS Cha nge 6 m onths to 31 Dec em ber 2014 2013 % c ha nge $m Gas (GWh) 1,277 1,471 -194 -13% Coal (GWh) 641 405 237 58% Tota l Therm a l (GWh) 1,9 18 1,8 75 42 2% Generation Hydro (GWh) Wind (GWh) Tota l Renewa ble (GWh) 1,351 11 1,36 3 1,456 12 1,46 8 -105 -1 -106 -7% -
Slide 12: Generation Versus Customer Demand
GENESIS ENERGY H1 2015 RESULTS Generation Versus Customer Demand Genesis Energy’s approach is to broadly match customer demand with generation output from Huntly Unit 5, plus its Generation versus Customer Demand hydro stations Huntly Unit 5 + Hydro Huntly Rankine Units + Unit 6 Customer Demand Cust
Slide 13: Fuel Management
GENESIS ENERGY H1 2015 RESULTS Change 6 m onths to 31 Decem ber 2014 2013 % change $m Wholesale Gas Sales (PJ) 10.7 5.7 5.0 87% Total Gas Purchases (PJ) 24.2 20.5 3.6 18% Gas Used in Internal Generation. (PJ) 9.6 11.8 -2.2 -19% Wholesale Coal Sales (PJ) 0.2 0.0 0.2 N/A Coal Purchases (PJ) 5.4 7.1 -1
Slide 14: Kupe
GENESIS ENERGY H1 2015 RESULTS Change Kupe: 6 m onths to 31 Decem ber 2014 2013 % change $m Gas Sales (PJ) 3.5 3.5 -0.1 -2% Oil Production (kbbl) 238.9 273.2 -34.3 -13% Oil Sales (kbbl) 233.4 255.1 -21.7 -9% LPG Sales (kilotonnes) 15.2 15.1 0.1 0% Kupe Oil Production Volumes (kbbl) Quarterly Product
Slide 15: People, Health and Safety
GENESIS ENERGY H1 2015 RESULTS People, Health and Safety The safety of Genesis Energy’s employees, contractors Genesis Energy Safety Statistics and workplaces continues to be a priority Total Recordable Injuries 12 Month Rolling Total Recordable Incident Frequency Rate (RHS) 10 35 • Genesis Energy i
Slide 16: H1 2015 Financial Performance
GENESIS ENERGY H1 2015 RESULTS H1 2015 FINANCIAL PERFORMANCE Andrew Donaldson Chief Financial Officer 16
Slide 17: Results Summary
GENESIS ENERGY H1 2015 RESULTS Cha nge $m H1 2015 H1 2014 % c ha nge $m Revenue 1,067.8 973.1 94.7 10% Energy Management EBITDAF 100.7 82.2 18.5 22% Customer Experience EBITDAF 44.2 35.6 8.6 24% Oil and Gas EBITDAF 46.9 55.0 -8.1 -15% Corporate Overheads -19.0 -22.2 3.2 -14% Total EBITDAF 172.8 150.
Slide 18: Profit and Loss Summary
GENESIS ENERGY H1 2015 RESULTS Cha nge $m H1 2015 H1 2014 % c ha nge $m Revenue 1,067.8 973.1 94.7 10% Total operating expenses 895.0 822.5 72.5 9% EBITDAF* 172.8 150.6 22.2 15% Depreciation depletion & amortisation 75.7 81.2 -5.5 -7% Impairment 3.3 3.6 -0.3 -9% Fair value change (gains)/losses -34.
Slide 19: Segmental Detail
GENESIS ENERGY H1 2015 RESULTS Genesis Energy Contribution to EBITDAF $250m $200m Oil & Gas $150m EBITDAF $m Customer Experience $100m Energy Management $50m Corporate $0m Segmental Detail -$50m H1 2012 H1 2013 H1 2014 H1 2015 Contributions to H1 2015 EBITDAF growth changed materially • The $9m impr
Slide 20: One-off and Significant Items
GENESIS ENERGY H1 2015 RESULTS Cha nge $m H1 2015 H1 2014 % change $m EBITDAF 172.8 150.6 22.2 15% Offer costs 0.0 2.4 -2.4 -100% Coal supply contract termination fee and 0.0 19.1 -19.1 -100% related onerous contracts Total im pac t on EBITDAF 0.0 21.5 -21.5 N/A One-off and Significant Items In the
Slide 21: Balance Sheet
GENESIS ENERGY H1 2015 RESULTS 31 Dec 30 Jun Change As at ($ m ) % change 2014 2014 $m Cash and cash equivalents 30.4 23.3 7.1 30% Other current assets 321.9 334.0 -12.1 -4% Non-current assets 3,252.3 3,272.1 -19.8 -1% Total assets 3,604.6 3,629.4 -24.8 -1% Total borrowings 989.4 989.4 0.0 0% Other
Slide 22: Cashflow and Capital Expenditure
GENESIS ENERGY H1 2015 RESULTS Change $m H1 2015 H1 2014 % c ha nge $m Net operating cashflow 136.2 164.6 -28.4 -17% Net investing cashflow -25.6 -32.6 7.0 -21% Net financing cashflow -103.5 -106.4 2.9 -3% Cashflow and Net inc reas e (dec rea se) in c a sh 7.1 25.6 -18.5 -72% Stay in business capex
Slide 23: Dividends
GENESIS ENERGY H1 2015 RESULTS Dividend policy remains unchanged: • Intention is to pay a dividend that provides shareholders with a consistent, reliable and attractive dividend even in periods of business- cycle downturn • Expected that year on year dividends will be at least maintained in real ter
Slide 24: Summary and Outlook
GENESIS ENERGY H1 2015 RESULTS Outlook • The Company is facing headwinds on achieving its 2015 EBITDAF PFI forecast due to lower Summary and Outlook international oil prices and continued aggressive retail competition • Retail electricity and gas markets will remain • There is some opportunity for t
Slide 25: Thank You
GENESIS ENERGY H1 2015 RESULTS THANK YOU 25