Genesis Energy Limited · NZX:GNE
Genesis Energy — Shareholder Meeting (October 2014)
20 slides from Genesis Energy's shareholder meeting presentation, Oct 28, 2014
Slide 1: Annual Shareholders' Meeting
GENESIS ENERGY ANNUAL SHAREHOLDERS’ MEETING GENESIS ENERGY Annual Shareholders’ Meeting 28 October 2014
Slide 2: Your Board
GENESIS ENERGY ANNUAL SHAREHOLDERS’ MEETING YOUR BOARD A wide range of professional and commercial experience ― Dame Jenny Shipley, Chairman, DNZM ― Rukumoana Schaafhausen ― Joanna Perry, Deputy Chairman, MNZM ― Mark Cross ― John Dell ― Doug McKay ― John Leuchars ― Andrew Clements ― Graeme Milne, ON
Slide 3: The Agenda
GENESIS ENERGY ANNUAL SHAREHOLDERS’ MEETING THE AGENDA ― Introduction ― Chairman’s Overview of Results for FY2014 ― Chief Executive’s Report ― Questions ― Resolutions and Voting ― Afternoon Tea
Slide 4: Your Company
GENESIS ENERGY ANNUAL SHAREHOLDERS’ MEETING YOUR COMPANY NEW ZEALAND’S LARGEST RETAILER 1 OF ELECTRICITY AND GAS DIVERSE AND FLEXIBLE 2 ELECTRICITY GENERATION OIL AND GAS 3 DIVERSIFICATION
Slide 5: Highlights
GENESIS ENERGY ANNUAL SHAREHOLDERS’ MEETING HIGHLIGHTS Listed on the NZX and ASX on 17 April 2014 • Welcomed 68,000 new investors on first day of trading • Delivered great service to our customers, both large and small • Completed major remediation work on Tekapo Canal • Placed a second coal/gas uni
Slide 6: Meeting the Challenges
GENESIS ENERGY ANNUAL SHAREHOLDERS’ MEETING MEETING THE CHALLENGES The Company demonstrated its resilience to market challenges ― Abundance of water in hydro schemes ― Warmer weather ― Addition of new renewables ― Reduced thermal generation ― Increasing retail competition ― Lower customer demand
Slide 7: 2014 Highlights
GENESIS ENERGY ANNUAL SHAREHOLDERS’ MEETING 2014 HIGHLIGHTS Albert Brantley Chief Executive 7
Slide 8: Your Executive Team
GENESIS ENERGY ANNUAL SHAREHOLDERS’ MEETING YOUR EXECUTIVE TEAM
Slide 9: Electricity Customers
GENESIS ENERGY ANNUAL SHAREHOLDERS’ MEETING ELECTRICITY CUSTOMERS • Genesis Energy maintains its position as New Zealand’s largest electricity retailer Electricity Sales Volumes (GWh) Quarterly TOU Sales Volumes Quarterly Mass Market Sales Volumes • Total electricity customers of 523,278 at 30 June
Slide 10: Gas Customers
GENESIS ENERGY ANNUAL SHAREHOLDERS’ MEETING Natural Gas Customers and Market Share Customer Numbers Share of Total Market (RHS) 120,000 45.0% 44.0% 115,000 43.0% 42.0% 110,000 41.0% Customers by ICP Market Share 105,000 40.0% 39.0% 100,000 38.0% 37.0% 95,000 36.0% GAS CUSTOMERS 90,000 35.0% Source:
Slide 11: Generation Performance
GENESIS ENERGY ANNUAL SHAREHOLDERS’ MEETING GENERATION PERFORMANCE Total Generation down 11% versus FY2013 to 6,427 GWh, Annual Generation Profile 9,000 4% lower than PFI as a result of: 8,000 Hau Nui Wind • A wetter end to the year resulting in reduced opportunity 7,000 Tekapo A & B to run thermal
Slide 12: Tekapo Canal
GENESIS ENERGY ANNUAL SHAREHOLDERS’ MEETING TEKAPO CANAL Work on the remediation of Tekapo Canal concluded in FY2014 • No lost time injuries over 224,000 man hours of work, over two seasons • Estimated $11.5m impact on FY2014 EBITDAF • Total capital expenditure of $136m • Below $145m to $155m budget
Slide 13: Kupe
GENESIS ENERGY ANNUAL SHAREHOLDERS’ MEETING KUPE Kupe continues to be a consistent source of earnings • Natural gas, oil and LPG volumes all up on FY2013 and compared to PFI, reflecting: • Higher export oil prices • Opportunities to accelerate gas off take Kupe Oil Production Volumes (kbbl) Kupe Gas
Slide 14: Health and Safety
GENESIS ENERGY ANNUAL SHAREHOLDERS’ MEETING 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) 10 30 • Genesis Energy is committed to a zero harm wor
Slide 15: Our People and Our Communities
GENESIS ENERGY ANNUAL SHAREHOLDERS’ MEETING OUR PEOPLE AND OUR COMMUNITIES Community investment is aligned to our business activity ― Strong relationship with iwi in each generation community ― Premier programme – Schoolgen – grows to 66 schools ― Whio Forever partnership with Department of Conserva
Slide 16: Results Summary
GENESIS ENERGY ANNUAL SHAREHOLDERS’ MEETING RESULTS SUMMARY EBITDAF, NPAT, free cash flow (FCF), dividends and net debt were all better than the PFI ― EBITDAF of $307.8m down 9% on FY2013 ― But 1% ahead of PFI ― NPAT of $49.2m was down 53% on FY2013 ― But 18% higher than PFI 16
Slide 17: EBITDAF Segmental Detail
GENESIS ENERGY ANNUAL SHAREHOLDERS’ MEETING Genesis Energy Contribution to EBITDAF $500m $400m Oil & Gas $300m EBITDAF $m Customer Experience EBITDAF $200m Energy Management $100m Corporate $0m SEGMENTAL DETAIL -$100m FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 Source: Genesis Energy FY2014 EBITDAF co
Slide 18: Balance Sheet
GENESIS ENERGY ANNUAL SHAREHOLDERS’ MEETING BALANCE SHEET • Net debt remains within the range of $950m to $1,000m Total Assets and Gearing • Despite increased dividend and capital expenditure associated with Tekapo Canal 4,000 Total Assets Gearing* 45% remediation 35% • Gearing is flat at 34.5%, but
Slide 19: Dividends
GENESIS ENERGY ANNUAL SHAREHOLDERS’ MEETING DIVIDENDS • Final dividend of 6.6 cps takes total dividends declared in FY2014 to 13cps • 14% ahead of FY2013 • 2% ahead of PFI • Dividend policy remains unchanged Intention is to pay a dividend that provides shareholders with a consistent, reliable and at
Slide 20: Outlook
GENESIS ENERGY ANNUAL SHAREHOLDERS’ MEETING Download the new Genesis Energy Investor App OUTLOOK • In the face of challenging retail and wholesale electricity markets, Genesis Energy has delivered FY2014 results better than the April 2014 PFI • Continuation of heightened retail competition in the el