Slide 1: Genesis Energy FY2014 Results Presentation
GENESIS ENERGY FY2014 RESULTS GENESIS ENERGY FY2014 Results Presentation
Slide 2: Disclaimer
GENESIS ENERGY FY2014 RESULTS DISCLAIMER Genesis Energy has taken reasonable care in compiling this presentation. However, neither Genesis Energy nor any of its directors, employees or shareholders shall have any liability whatsoever to any person for any loss (including, without limitation, arising
Slide 3: 2014 Highlights
GENESIS ENERGY FY2014 RESULTS 2014 HIGHLIGHTS Albert Brantley Chief Executive 3
Slide 4: FY2014 a Milestone Year
GENESIS ENERGY FY2014 RESULTS FY2014 a Milestone Year • Listed on the NZX and ASX on 17 April 2014 • 68,000 new shareholders at listing • Genesis Energy relied on three key business activities to manage the impact of volatility in New Zealand’s electricity market on its earnings, achieve the prospec
Slide 5: Strategic Highlights
GENESIS ENERGY FY2014 RESULTS Strategic Highlights • Improved on delivery of our commitment to Health and Safety and achieving a zero harm work place • Completed remediation work on the Tekapo Canal ahead of schedule, under budget and with no lost time injuries or major incidents recorded • Placed s
Slide 6: Wholesale Electricity Market
GENESIS ENERGY FY2014 RESULTS Daily Average Wholesale Electricity Prices and Lake Storage - FY2014 Otahuhu (OTA2201) Benmore (BEN2201) Actual Storage - GWh (RHS) Storage 80 year average (RHS) $300 4500 Wholesale Price ($/MWh) 4000 Lake Storage (GWh) $250 3500 $200 3000 2500 $150 2000 $100 1500 Whole
Slide 7: Customer Experience Performance
GENESIS ENERGY FY2014 RESULTS Difference 12 m onths to June 30 2014 2014 PFI 2013 % c ha nge vs PFI % Electricity Customers 523,278 541,920 -3% 543,774 -4% Gas Customers 111,966 118,949 -6% 115,003 -3% Total Cus tom ers ex LPG 6 35,244 6 60,86 9 -4% 6 58 ,777 - 4% LPG Customers 11,803 12,708 -7% 9,7
Slide 8: Electricity Customers and Market Share
GENESIS ENERGY FY2014 RESULTS Electricity Customers and Market Share Customer Numbers Share of Total Market (RHS) 550,000 27.5% 540,000 27.0% 530,000 26.5% 520,000 26.0% Electricity Customers 510,000 Customers by ICP 25.5% Market Share 500,000 25.0% 490,000 24.5% • Genesis Energy maintains its posit
Slide 9: Retaining Electricity Customers
GENESIS ENERGY FY2014 RESULTS Geographic Split of Electricity Customers North Island customers South Island customers South Island share (RHS) 600,000 18% South Island Share of total customers 16% 550,000 14% 500,000 12% Retaining Customers by ICP 10% 450,000 8% Electricity Customers 400,000 6% 4% 3
Slide 10: Drivers of Electricity Sales Volumes
GENESIS ENERGY FY2014 RESULTS Contribution to year on year growth in mass market electricity sales volumes yoy change in Genesis Energy household consumption yoy change in customer numbers yoy change in mass market sales volumes 6% 4% 2% 0% -2% -4% Drivers of Electricity Sales -6% -8% -10% -12% Volu
Slide 11: Gas Customers
GENESIS ENERGY FY2014 RESULTS 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% Gas Customers 100,000 39.0% 38.0% 37.0% 95,000 • 111,966 gas customers at 30 June 2014,
Slide 12: Generation Performance
GENESIS ENERGY FY2014 RESULTS Differenc e 12 Months to 30 June 2014 2014 PFI 2013 % change vs PFI % Gas (GWh) 2,930 2,780 5% 2,732 7% Coal (GWh) 977 1,317 -26% 2,259 -57% Tota l Therm a l (GWh) 3,9 07 4,09 7 -5% 4,9 9 1 - 22% Hydro (GWh) 2,497 2,543 -2% 2,200 13% Wind (GWh) 23 27 -15% 21 9% Tota l R
Slide 13: Generation Versus Customer Demand
GENESIS ENERGY FY2014 RESULTS Generation Versus Customer Demand Customer demand continues to be matched broadly by generation output from Huntly Unit 5 plus the hydro Generation versus Customer Demand stations Huntly Unit 5 + Hydro Huntly Rankine Units + Unit 6 Customer Demand 1,000 • Some periods t
Slide 14: Tekapo Canal Remediation
GENESIS ENERGY FY2014 RESULTS Tekapo Canal Remediation Work on the remediation of Tekapo Canal concluded in FY2014 • Second season of canal outage was for 8 weeks with Tekapo B station generating by 26 February 2014 • No lost time injuries over 243,000 man hours of work, over two seasons • Estimated
Slide 15: Fuel Management
GENESIS ENERGY FY2014 RESULTS Difference Fuel m anagem ent: 12 Months to 30 June 2014 2014 PFI 2013 % change vs PFI % Wholesale Gas Sales (PJ) 15.8 15.7 1% 12.6 26% Total Gas Purchases (PJ) 45.0 45.7 -2% 38.6 17% Gas Used in Internal Generation. (PJ) 23.1 23.7 -3% 21.0 10% Wholesale Coal Sales (PJ)
Slide 16: Kupe
GENESIS ENERGY FY2014 RESULTS Difference Kupe: 12 Months to 30 June 2014 2014 PFI 2013 % change vs PFI % Gas Sales (PJ) 7.1 6.9 3% 5.6 26% Oil Production (kbbl) 535.3 515.1 4% 485.8 10% Oil Sales (kbbl) 531.5 497.9 7% 509.1 4% LPG Sales (kilotonnes) 29.8 29.6 1% 24.0 24% Oil and Gas EBITDAF 107.0 10
Slide 17: People, Health and Safety
GENESIS ENERGY FY2014 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) 10 30 • Genesis Energy is committed to a zero harm work Numb
Slide 18: 2014 Financial Performance
GENESIS ENERGY FY2014 RESULTS 2014 FINANCIAL PERFORMANCE Andrew Donaldson Chief Financial Officer 18
Slide 19: Results Summary
GENESIS ENERGY FY2014 RESULTS Results Summary • EBITDAF, NPAT, free cash flow (FCF), dividends and net debt are better than the PFI • EBITDAF of $307.8m down 9% on FY2013 but 1% ahead of PFI • Reduced operating expenses more than offset lower revenue – purchasing electricity from the market cheaper
Slide 20: Segmental Detail
GENESIS ENERGY FY2014 RESULTS Genesis Energy Contribution to EBITDAF $500m $400m Oil & Gas Segmental Detail $300m EBITDAF $m Customer Experience $200m Energy Management FY2014 EBITDAF composition changed materially from $100m Corporate FY2013 $0m • $42m increase in Customer Experience EBITDAF -$100m
Slide 21: One-off and Significant Items
GENESIS ENERGY FY2014 RESULTS Relative to Signific ant item s: $ m 2014 2014 PFI 2013 % change PFI EBITDAF 307.8 305.2 a hea d 336 .6 -9% Tekapo Power Scheme outage 11.5 8 to 12 in line 20 to 25 -49% Offer costs 9.8 10.0 in line 0.6 1533% Coal supply contract termination fee and related onerous cont
Slide 22: Managing Volatility and Balance Sheet
GENESIS ENERGY FY2014 RESULTS Managing Volatility EBITDAF Components and Wholesale Electricity Price • FY2014 results reinforce ability of Genesis 2500 $100 Electricity revenue Energy’s portfolio to manage volatility in the 2000 $80 Other revenue (excl. Kupe) wholesale electricity price 1500 $60 Gas
Slide 23: Capital Expenditure and Cashflow
GENESIS ENERGY FY2014 RESULTS Differenc e $m 2014 2014 PFI 2013 % c ha nge vs PFI % Net operating cashflow 303.9 293.3 4% 298.4 2% Net investing cashflow -82.9 -97.6 -15% -172.6 -52% Net financing cashflow -220.4 -193.9 14% -127.9 72% Net increa s e (dec rea se) in c a s h 0.6 1.8 -65% - 2.1 -131% S
Slide 24: Dividends Declared
GENESIS ENERGY FY2014 RESULTS Dividend policy remains unchanged: • Intention is to pay a dividend that provides shareholders with a consistent, reliable and attractive dividend even in periods of business- cycle downturn • Expected that year on year dividends will be at least maintained in real term
Slide 25: Summary and Outlook
GENESIS ENERGY FY2014 RESULTS Download the new Genesis Energy Investor App Summary and Outlook Outlook • In the face of challenging retail and wholesale • Continuation of heightened retail competition in the electricity markets, Genesis Energy has delivered electricity and natural gas markets, warme
Slide 26: Thank You
GENESIS ENERGY FY2014 RESULTS THANK YOU 26