Genesis Energy Limited · NZX:GNE
Genesis Energy — Investor Presentation (November 2019)
7 slides from Genesis Energy's investor presentation, November 2019
Slide 1: Addendum to Investor Roadshow Presentation: NZAS Closure Discussion
Addendum to Investor Roadshow Presentation: NZAS Closure Discussion November 2019
Slide 2: New Zealand Aluminium Smelter (NZAS) has announced strategic review
New Zealand Aluminium Smelter (NZAS) has announced strategic review 13% of national energy demand – impact of downsizing or closure will impact New Zealand energy market The smelter has been a significant part of New Zealand’s electricity demand since it commenced operation in 1971. When it restarte
Slide 3: Closure would release significant energy into lower South Island
Closure would release significant energy into lower South Island Transmission constraints will limit energy travelling north to load centres where it could displace existing thermal NEW ZEALAND ELECTRICITY DEMAND (TWH) Significant investment in transmission assets is UPPER required to enable transmi
Slide 4: Impact of NZAS exit on Genesis is expected to be limited
Impact of NZAS exit on Genesis is expected to be limited Net short generation position in South Island benefits from lower prices whilst a flexible portfolio in the north provides opportunities to adjust in response to market changes Genesis’ North Island generation and customers are insulated from
Slide 5: Transmission upgrades will be required
Transmission upgrades will be required If Tiwai closes these upgrades take 5 to 8 years and the $600m cost means it may not be the best option for the consumer Transmission upgrades needed Retail is a shock absorber • Wholesale price is only ~35% of customers bill • Retail prices respond slowly • Ge
Slide 6: Analyst views & research
Analyst views & research The following analysts have issued recent independent research on the NZAS strategic review Enerlytica: John Kidd, john.kidd@enerlytica.co.nz Forsyth Barr: Andrew Harvey-Green, andrew.harvey-green@forsythbarr.co.nz UBS: Aaron Ibbotson, aaron.ibbotson@ubs.com Craigs / Deutsch
Slide 7: Slide 7
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