Genesis Energy Limited · NZX:GNE
Genesis Energy — UBS Utilities Conference (June 2014)
14 slides from Genesis Energy's conference presentation, Jun 19, 2014
Slide 1: Genesis Energy: A New Zealand Vertically Integrated Electricity Generator and Retailer
UBS UTILITIES CONFERENCE For personal use only GENESIS ENERGY A NEW ZEALAND VERTICALLY INTEGRATED ELECTRICITY GENERATOR AND RETAILER Albert Brantley CHIEF EXECUTIVE JUNE 2014
Slide 2: Disclaimer
UBS UTILITIES CONFERENCE For personal use only DISCLAIMER This presentation includes certain prospective financial information, which is also contained in the Prospectus. The principal assumptions and method of calculation of the prospective financial information included in this presentation are se
Slide 3: Diverse earnings, aims to deliver consistent, reliable and attractive dividends
UBS UTILITIES CONFERENCE Diverse earnings, aims to deliver consistent, reliable and attractive dividends For personal use only 01 NEW ZEALAND’S 02 DIVERSE 03 OIL LARGEST AND AND GAS RETAILER FLEXIBLE DIVERSIFICATION OF ELECTRICITY AND GAS ELECTRICITY GENERATION THROUGH KUPE INVESTMENT PORTFOLIO 3
Slide 4: Being a vertically integrated generator and retailer is our competitive advantage
UBS UTILITIES CONFERENCE BEING A VERTICALLY For personal use only INTEGRATED GENERATOR AND RETAILER IS OUR COMPETITIVE ADVANTAGE New Zealand’s largest retailer of electricity and gas ― 531,00 electricity customers (first in market), 69% with advanced meters* ― 114,000 gas customers (first in market)
Slide 5: New Zealand's largest energy retailer
UBS UTILITIES CONFERENCE For personal use only NEW ZEALAND’S LARGEST ENERGY RETAILER ― Electricity customer base has settled around 530k level and 16% based in South Island ― Dual Fuel strategy (Electricity and Gas/LPG) is key to customer retention, reducing cost to serve • 70% of gas customers also
Slide 6: Recent switching levels place New Zealand at highest churn in the world
UBS UTILITIES CONFERENCE For personal use only Recent switching levels place New Zealand at highest churn in the world Indicative of: ― Significant competition from smaller players ― Wholesale electricity price environment ― Regulator’s initiatives 6
Slide 7: Diverse and flexible electricity generation portfolio
UBS UTILITIES CONFERENCE For personal use only DIVERSE AND FLEXIBLE ELECTRICITY GENERATION PORTFOLIO ― Good mix of thermal (69%) and renewable (31%) generation, covering multiple fuel types and both North and South Islands of New Zealand. 7
Slide 8: Utilisation of generation assets
UBS UTILITIES CONFERENCE For personal use only UTILISATION OF GENERATION ASSETS ― Continue to match customer demand with base load generation from market competitive Huntly Unit 5 CCGT, plus hydro power stations ― Higher cost coal/gas fired thermal units operate long in the market and enable us to o
Slide 9: Movement in wholesale prices
UBS UTILITIES CONFERENCE For personal use only MOVEMENT IN WHOLESALE PRICES ― Recent wet weather in April/May has seen sharp re-basing of New Zealand’s hydro storage levels resulting in lower wholesale electricity prices ― Modeling suggests that for prices between $30 to $75/MWh there is limited cor
Slide 10: Earnings diversification through 31% shareholding in Kupe oil and gas field
UBS UTILITIES CONFERENCE EARNINGS For personal use only DIVERSIFICATION THROUGH 31% SHAREHOLDING IN KUPE OIL AND GAS FIELD ― Diverse earnings profile and disciplined capital expenditure aim to deliver consistent, reliable and attractive dividend with real year-on-year growth ― Dividend payout of 83%
Slide 11: Oil and gas diversification
UBS UTILITIES CONFERENCE For personal use only OIL AND GAS DIVERSIFICATION ― 31% share of Kupe oil and gas field • Origin Energy (50% – operator), NZ Oil and Gas 15%, Mitsui 4% ― Kupe continues to be a consistent and significant source of fuel and earnings (EBITDAF). Genesis Energy receives • 100% o
Slide 12: EBITDAF profile reflects ability to manage volatile market
UBS UTILITIES CONFERENCE For personal use only EBITDAF PROFILE REFLECTS ABILITY TO MANAGE VOLATILE MARKET ― Total EBITDAF ― Wholesale Electricity Price Wholesale and Retail Electricity Revenue Kupe EBITDAF Electricity Purchases and Fuel Costs FY2011 FY2012 FY2013 FY2014 FY2015 12
Slide 13: Financial update
UBS UTILITIES CONFERENCE For personal use only FINANCIAL UPDATE ― Now dual listed on NZX and ASX • Market cap of NZ$1.86bn, EV of NZ$2.9bn • 68,000 shareholders on listing ― Still on target to meet PFI forecasts: • FY2014 EBITDAF of $305.2m, DPS of 12.8cps • FY2015 EBITDAF of $363.4m, DPS of 16.0cps
Slide 14: Thank you
UBS UTILITIES CONFERENCE For personal use only THANK YOU 14
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