Genesis Energy Limited · NZX:GNE
Genesis Energy — Q4 FY17 Earnings Presentation
19 slides from Genesis Energy's earnings presentation, 2017
Slide 1: Genesis Energy
a genesis ENERGY
Slide 2: Q4 FY17 Performance Update: Quarter Highlights
Q4 FY17 PERFORMANCE UPDATE QUARTER HIGHLIGHTS Nova Energy retail Generation Kupe acquisition LPG acquisition completed and up 13% on Q4 FY16 production on target integration with GWAP up 21% with record 100% progressing well production in June
Slide 3: Q4 FY17 Performance Summary
Q4 FY17 Performance Summary Eventful final quarter with a major acquisition completed amidst favourable spot market conditions The acquisition of the Nova Energy retail LPG business placed Genesis as the second largest LPG retailer in New Zealand. This cements our unique position as the only retaile
Slide 4: Customer Segment Performance
Customer Segment Performance Nova Energy retail LPG acquisition completed as Genesis drives towards an integrated customer experience Highs Lows $240.65/MWh 1,505 GWh 505,120 Mass market volume Retail electricity Electricity ICP’s weighted average 1.7% sales 6.5% excluding vacants electricity price
Slide 5: Wholesale Segment Performance
Wholesale Segment Performance A geographically diverse and flexible portfolio delivering value in all market conditions Highs Lows $78.88/MWh 835 GWh 224 GWh Average price Total renewable Tekapo Hydro received for generation Generation 21.4% 31.0% 11.2% generation 98.6 GWh 277 tCO2/GWh Swaptions cal
Slide 6: Wholesale Segment Performance
Wholesale Segment Performance Hydrological conditions in last quarter highlights thermal as an enabler of NZ’s high level of renewable DAILY AVERAGE WHOLESALE PRICES & NATIONAL HYDRO – Q4 FY17 TAKE-OR-PAY FORWARD GAS PURCHASES1 – NEW DISCLOSURE April: Storage May: Storage June: Storage 45 $7.50 - Wh
Slide 7: Kupe Segment Performance
Kupe Segment Performance Increased Kupe production supporting downstream portfolio flexibility Retail Customers Highs Lows 1.9 PJ Gas 1,505 GWh Electricity 1.7 kT LPG 1.0 PJ 247.6 kbbl $49.69 USD/bbl Wholesale Market 2.9 PJ Gas 587 GWh Electricity 8.1 kT LPG 15% acquisition Kupe Oil Sales Average Sp
Slide 8: Other Corporate Highlights
Other Corporate Highlights Agile culture embracing and leading change Local Energy Highs Lows Project team member handing over the keys of a 754 150+ 0.53 Nissan Leaf to the FTE excluding employees working Total recordable 3.9% Featherstone Nova as optimise in agile environment injury frequency rate
Slide 9: Glossary
Glossary CUSTOMER Net Promoter Score Based on survey question "How likely would you be to recommend Genesis Energy/Energy Online to your friends or family?" Electricity Market Share Market share based on Electricity Authority data for the end of quarter Gas Market Share Market share based on Gas Ind
Slide 10: Metrics: Core Customer
Metrics CORE Q4 FY17 Q4 FY16 % Change Var. YTD FY17 YTD FY16 % Change Var. CUSTOMER Volume Weighted Average Electricity Selling Price - MM ($/MWh) $244.85 $240.65 1.7% $4.20 $242.30 $238.27 1.7% $4.03 Volume Weighted Average Electricity Selling Price - TOU ($/MWh) $129.89 $132.96 (2.3%) ($3.08) $120
Slide 11: Metrics: Core Generation
Metrics CORE Q4 FY17 Q4 FY16 % Change Var. YTD FY17 YTD FY16 % Change Var. GENERATION Gas (GWh) 927 871 6.4% 56 3,082 3,240 (4.9%) (158) Coal (GWh) 138 179 (22.8%) (41) 186 803 (76.9%) (617) Total Thermal (GWh) 1,065 1,050 1.5% 15 3,268 4,043 (19.2%) (775) Hydro (GWh) 831 632 31.4% 199 3,133 2,654 1
Slide 12: Metrics: Optimise
Metrics OPTIMISE Q4 FY17 Q4 FY16 % Change Var. YTD FY17 YTD FY16 % Change Var. CUSTOMER Net Promoter Score - Genesis Energy (%) 1% -4% 125.0% 5.0% Electricity Market Share (%) 24.5% 25.6% (4.4%) (1.1%) Gas Market Share (%) 37.6% 39.3% (4.3%) (1.7%) Electricity ICP's Excluding Vacants (#) 505,120 523
Slide 13: Metrics: Innovate and Invest
Metrics INNOVATE Q4 FY17 Q4 FY16 % Change Var. YTD FY17 YTD FY16 % Change Var. CUSTOMER LPG Customer Connections (#) 18,893 15,890 18.9% 3,003 Bottled LPG Sales (tonnes) 1,515 1,118 35.5% 397 5,020 3,990 25.8% 1,030 Other LPG sales (tonnes) 1,554 1,818 (14.5%) (264) 4,675 8,460 -44.7% (3,785) Wholes
Slide 14: Appendix: Customer Segment
Appendix: Customer Segment ELECTRICITY CUSTOMER CONNECTIONS & MARKET SHARE NATURAL GAS CUSTOMER CONNECTIONS & MARKET SHARE Customer Connections Share of Total Market (RHS) Customer Connections Share of Total Market (RHS) 550,000 30% 130,000 50% Customers by connections Customers by connections 540,0
Slide 15: Appendix: Customer Switching Rates
Appendix: Customer Segment GENESIS ENERGY vs. INDUSTRY ELECTRICITY CUSTOMER CONNECTION SWITCHING Genesis Energy Monthly Switching Rate NZ Electricity Market Monthly Switching Rate Genesis Energy 12 Month Rolling Switching Rate Electricity Industry Rolling 12m % annualised 30% 28% 26% 24% 22% 20% 18%
Slide 16: Appendix: Wholesale Segment
Appendix: Wholesale Segment GENERATION BY POWER STATION 8,000 PLANT PERFORMANCE Monthly EAF Monthly FOF 7,000 100% 20% 6,000 90% 18% Equipment Availability Factor (EAF) % Hau Nui Wind Farm 80% 16% Forced Outage Factor (FOF) % Tekapo A and B power stations 5,000 70% 14% Waikaremoana Power Scheme 60%
Slide 17: Appendix: Wholesale Segment Storage
0 100 200 300 400 500 600 700 800 GWh 01-Jan 06-Jan 11-Jan Source: COMIT 16-Jan 21-Jan 26-Jan 31-Jan 05-Feb 10-Feb 15-Feb 20-Feb 25-Feb Tekapo Storage 02-Mar Q4 FY17 PERFORMANCE UPDATE 07-Mar 12-Mar 17-Mar 22-Mar 27-Mar TEKAPO STORAGE vs LONG RUN AVERAGE – Q4 FY2017 01-Apr 0 500 1,000 1,500 2,000 2,
Slide 18: Appendix: Kupe Segment
Appendix: Kupe Segment KUPE GAS SALES VOLUMES (PJ) KUPE OIL PRODUCTION VOLUMES (kbbl) PJ Quarterly Sales Volumes PJ Quarterly Production Volumes '000s of barrels '000s of barrels 3.5 Rolling 12month sales volume (RHS) 10.0 Rolling 12month production volumes (RHS) 200 600 3.0 9.0 180 550 8.0 160 500
Slide 19: Appendix: Kupe Segment Risk Management
Appendix: Kupe Segment BRENT CRUDE OIL SPOT PRICE OIL PRICE and FOREX RISK MANAGEMENT – NEW DISCLOSURE FY2017 FY2016 USD/bbl $60 FORWARD RISK MANAGEMENT % HEDGED Oil Price Hedges Average Oil Price $55 1-12 months 74% USD56.3 $50 13-24 months 55% USD56.0 $45 25-36 months 16% USD54.3 USD/NZD Hedges Ra