Genesis Energy Limited · NZX:GNE
Genesis Energy — FY2015 Earnings Presentation
34 slides from Genesis Energy's earnings presentation, 2015
Slide 1: Genesis Energy FY2015 Results Presentation
GENESIS ENERGY FY2015 RESULTS GENESIS ENERGY FY2015 Results Presentation
Slide 2: Disclaimer
GENESIS ENERGY FY2015 RESULTS DISCLAIMER This presentation has been compiled by Genesis Energy Limited for information purposes only. This disclaimer applies to this document and the verbal and written comments of any person presenting it. Genesis Energy has taken reasonable care in compiling the in
Slide 3: 2015 Highlights
GENESIS ENERGY FY2015 RESULTS 2015 HIGHLIGHTS Albert Brantley Chief Executive 3
Slide 4: FY2015 a strong year
GENESIS ENERGY FY2015 RESULTS FY2015 a strong year • Focused on delivering a strong performance in second year following listing • Good result delivered despite a year of continuing challenges including competitive retail market, relatively subdued wholesale prices and a sharp fall in international
Slide 5: Strategic Highlights
GENESIS ENERGY FY2015 RESULTS Strategic Highlights • Signs of stabilisation in the customer numbers late in the Post balance date year • Launch of flat rate gas plans and Energy Online re- • Major planned outage of Huntly Unit 5 in November to branding December 2014, next outage planned for late 201
Slide 6: Wholesale Electricity Market
GENESIS ENERGY FY2015 RESULTS Daily Average Wholesale Reference Point Prices and Lake Storage - FY2015 Otahuhu (OTA2201) Benmore (BEN2201) Actual Storage - GWh (RHS) Storage 80 year average (RHS) $200 4000 Wholesale Price ($/MWh) $180 3500 Lake Storage (GWh) $160 3000 $140 $120 2500 $100 2000 $80 15
Slide 7: Customer Experience Performance
GENESIS ENERGY FY2015 RESULTS 12 m onths to June 30 2015 2014 % c hange Electricity Customers 516,574 523,278 -1% Gas Customers 106,263 111,966 -5% Tota l Cus tom ers ex LPG 6 22,8 37 6 35,244 - 2% LPG Customers 13,839 11,803 17% Tota l Cus tom er Acc ounts 6 36 ,6 76 6 47,047 - 2% Total Advanced Me
Slide 8: Electricity Customers and Market Share
GENESIS ENERGY FY2015 RESULTS Electricity Customers and Market Share Customer Numbers Share of Total Market (RHS) 550,000 30% 540,000 29% 530,000 28% 520,000 27% 510,000 26% Customers by ICP Market Share 500,000 25% 490,000 24% 480,000 23% 470,000 22% 460,000 21% 450,000 20% Electricity Customers So
Slide 9: Electricity Customer Trends
GENESIS ENERGY FY2015 RESULTS Monthly Movement in Electricity ICPs Genesis Energy Energy Online Total 4000 3000 Net Increase/(Decrease) in ICPs per month 2000 1000 0 -1000 -2000 Electricity Customer -3000 -4000 Trends -5000 -6000 Aug-12 Dec-12 Mar-13 Apr-13 May-13 Dec-13 Jun-13 Aug-13 Mar-14 Apr-14
Slide 10: Financial Drivers of Electricity Earnings
GENESIS ENERGY FY2015 RESULTS Average electricity price to Genesis Energy mass market customers Monthly Average Price (incl lines) Rolling 12m average price 260 250 Average Price ($/MWh) 240 230 Financial Drivers of 220 210 Electricity Earnings 200 Jul-13 Aug-13 Nov-13 Oct-13 Dec-13 Jan-14 Mar-14 Ap
Slide 11: Customer Switching and Dual Fuel Base
GENESIS ENERGY FY2015 RESULTS Genesis Energy vs. Industry Electricity Customer Switching 26% 24% 22% 20% % annualised 18% 16% 14% Retaining 12% 10% Aug-12 Aug-13 Aug-14 Jul-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-1
Slide 12: Natural Gas Customers and Market Share
GENESIS ENERGY FY2015 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% 100,000 36% Gas Customers Source: Company data,
Slide 13: Gas Customer Trends
GENESIS ENERGY FY2015 RESULTS Average gas price to Genesis Energy mass market customers Monthly average gas price (incl transmission) Rolling 12m average 45 40 35 Average Price ($/GJ) 30 25 20 15 10 5 0 Gas Customer Trends Dec-13 Mar-14 Apr-14 May-14 Dec-14 Mar-15 Apr-15 May-15 Aug-13 Sep-13 Oct-13
Slide 14: Generation Performance
GENESIS ENERGY FY2015 RESULTS 12 Months to 30 June 2015 2014 % change Gas (GWh) 2,772 2,930 -5% Coal (GWh) 1,277 977 31% Tota l Therm al (GWh) 4,049 3,9 07 4% Hydro (GWh) 2,627 2,497 5% Wind (GWh) 22 23 -5% Generation Tota l Renewa ble (GWh) Tota l Genera tion (GWh) Average Price Received for Genera
Slide 15: Generation Versus Customer Demand
GENESIS ENERGY FY2015 RESULTS Generation Versus Customer Demand Customer demand continues to be matched broadly by generation output from Huntly Unit 5 plus the hydro stations Generation versus Customer Demand Huntly Unit 5 + Hydro Huntly Rankine Units + Unit 6 Customer Demand • With only two Rankin
Slide 16: Rankine Retirement
GENESIS ENERGY FY2015 RESULTS Rankine Retirement On 6 August 2015 Genesis Energy announced that, it will retire the two remaining Rankine units at Huntly by December 2018 Huntly Rankine Units Generation Monthly Generation 12 Month Rolling Total Generation (RHS) • Rationale is driven by reduction in
Slide 17: Fuel Management
GENESIS ENERGY FY2015 RESULTS 12 Months to 30 June 2015 2014 % change Wholesale Gas Sales (PJ) 20.6 15.8 30% Total Gas Purchases (PJ) 48.5 45.0 8% Gas Used in Internal Generation. (PJ) 20.8 23.1 -10% Wholesale Coal Sales (PJ) 0.7 0.0 N/A Coal Purchases (PJ) 9.6 12.4 -22% Coal Used in Internal Genera
Slide 18: Coal and Gas Use
GENESIS ENERGY FY2015 RESULTS Gas and Coal Used For Thermal Generation Gas Used In Internal Generation (PJ) Coal Used In Internal Generation (PJ) 7 6 5 4 PJ 3 2 1 Coal and Gas Use 0 Oct-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jul-09 Apr-10 Jul-10 Oct-10 Apr-11 Jul-11 Oct-11 Apr-12 Jul-12 Oct-12
Slide 19: Kupe
GENESIS ENERGY FY2015 RESULTS Kupe: 12 Months to 30 June 2015 2014 % change Gas Sales (PJ) 7.6 7.1 7% Oil Production (kbbl) 502.1 535.3 -6% Oil Sales (kbbl) 500.8 531.5 -6% LPG Sales (kilotonnes) 31.6 29.8 6% Oil a nd Gas EBITDAF 9 3.5 107.0 - 13% Kupe Kupe continues to be a consistent source of ear
Slide 20: Kupe cont'd
GENESIS ENERGY FY2015 RESULTS Full field reserves (2P) Full Field Production Full Field Remaining Reserves (2P) 30-Jun-12 FY2013 FY2014 FY2015 Developed Undeveloped Total Condensate / barrel (000) 13,629 1,556 1,712 1,608 5,016 3,737 8,753 Light Oil Gas PJ 276 18 23 24 123 88 211 LPG tonne (000) 1,1
Slide 21: People, Health and Safety
GENESIS ENERGY FY2015 RESULTS People, Health and Safety The safety of our employees and workplace remains a Genesis Energy Safety Statistics priority Total Recordable Injuries 12 Month Rolling Total Recordable Incident Frequency Rate (RHS) • Genesis Energy is committed to a zero harm work 10 35 envi
Slide 22: 2015 Financial Performance
GENESIS ENERGY FY2015 RESULTS 2015 FINANCIAL PERFORMANCE Andrew Donaldson Chief Financial Officer 22
Slide 23: Results Summary
GENESIS ENERGY FY2015 RESULTS Results Summary • NPAT and Free Cash Flow (FCF) are better than the 12 m onths to 30 June ($ m ) 2015 2014 % c ha nge Prospectus forecasts – dividends are in line Revenue 209 7.6 2,005.0 5% Total operating expenses (1) 1,752.8 1,697.2 3% • EBITDAF of $344.8m was up 12%
Slide 24: Segmental Detail
GENESIS ENERGY FY2015 RESULTS Genesis Energy EBITDAF by Segment $500m $400m Oil & Gas $300m EBITDAF $m Customer Experience $200m Energy Management $100m Corporate $0m Segmental Detail -$100m FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 Source: Genesis Energy • Customer Experience, Energy Managem
Slide 25: Balance Sheet
GENESIS ENERGY FY2015 RESULTS As a t 30 June ($ m ) 2015 2014 % c hange Cash and cash equivalents 21.0 23.3 -10% Other current assets 325.5 334.0 -3% Non-current assets 3,181.5 3,272.1 -3% Tota l a s s ets 3,528 .0 3,6 29 .4 - 3% Total borrowings 958.2 989.3 -3% Other liabilities 744.4 759.3 -2% Tot
Slide 26: Cashflow and Capital Expenditure
GENESIS ENERGY FY2015 RESULTS Ca shflow: 12 m onths to 30 June ($ m ) 2015 2014 % change Net operating cashflow 318.5 303.9 5% Net investing cashflow -48.6 -82.9 -41% Cashflow and Net financing cashflow Net increas e (decreas e) in c as h Stay in business capex -272.2 - 2.3 43.6 -220.4 0.6 54.5 24%
Slide 27: Dividends
GENESIS ENERGY FY2015 RESULTS Dividend policy: • Intention is to pay a dividend that provides shareholders with a consistent, reliable and attractive dividend even in periods of business- cycle downturn • Imputation expected to be less than 100% in future Dividends • Final dividend of 8.0cps takes t
Slide 28: Summary and Outlook
GENESIS ENERGY FY2015 RESULTS Summary and Outlook • In the face of dynamic retail and wholesale electricity and gas markets, Genesis Energy has delivered FY2015 results ahead of those Outlook in FY2014 • Above average national hydro storage levels will continue to impact wholesale electricity prices
Slide 29: Appendix
GENESIS ENERGY FY2015 RESULTS APPENDIX 29
Slide 30: Reconciliation of EBITDAF to NPAT
GENESIS ENERGY FY2015 RESULTS $ m 12 Months to 30 June 2015 2014 % change EBITDAF 344.8 307.8 12% Depreciation, depletion and amortisation -155.7 -156.7 -1% Impairment of non-current assets -14.0 -10.1 39% Change in fair value of financial instruments 32.1 0.4 7081% Other gains (losses) -0.2 -1.6 -8
Slide 31: Free Cash Flow
GENESIS ENERGY FY2015 RESULTS $ m 12 Months to 30 June 2015 2014 % change EBITDAF 344.8 307.8 12% Less finance expense 68.0 69.1 -2% Less income tax expense 35.5 22.4 58% Less stay in business capital expenditure 43.6 54.5 -20% Free Ca sh Flow 19 7.7 16 1.8 22% Free Cash Flow • Free Cash Flow (FCF)
Slide 32: Debt Profile
GENESIS ENERGY FY2015 RESULTS Genesis Energy Debt Profile $350 $300 $250 $200 $m $150 $100 $50 $0 Debt Profile FY FY FY Retail Bonds FY FY FY FY FY Wholesale Domestic FY FY FY Revolving Credit FY 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Capital Bonds USPP FY 2042 • Recent restruct
Slide 33: Net Debt to EBITDAF ratio
GENESIS ENERGY FY2015 RESULTS Genesis Energy Net Debt to EBTIDAF 5.0 4.5 Net Debt to EBTIDAF ratio 4.0 3.5 3.0 Target range 2.5 2.0 Net Debt to 1.5 1.0 0.5 EBITDAF ratio 0.0 FY2012 FY2013 FY2014 FY2015* *FY2015 net debt adjusted for USPP • Net Debt to EBITDAF ratio is the key metric focused on by cr
Slide 34: Thank You
GENESIS ENERGY FY2015 RESULTS THANK YOU 34