Genesis Energy Limited · NZX:GNE
Genesis Energy — Shareholder Meeting (October 2015)
25 slides from Genesis Energy's shareholder meeting presentation, Oct 20, 2015
Slide 1: Annual Shareholders' Meeting
GENESIS ENERGY ANNUAL SHAREHOLDER MEETING 2015 GENESIS ENERGY Annual Shareholders’ Meeting 20 October 2015
Slide 2: Disclaimer
GENESIS ENERGY ANNUAL SHAREHOLDER MEETING 2015 DISCLAIMER This presentation has been compiled by Genesis Energy Limited for information purposes only. This disclaimer applies to this document and the verbal and written comments of any person presenting it. Genesis Energy has taken reasonable care in
Slide 3: 2015 Highlights
GENESIS ENERGY ANNUAL SHAREHOLDER MEETING 2015 2015 HIGHLIGHTS Dame Jenny Shipley Chairman 3
Slide 4: Your Board
GENESIS ENERGY ANNUAL SHAREHOLDER MEETING 2015 YOUR BOARD • Dame Jenny Shipley, Chairman, DNZM • Joanna Perry, Deputy Chairman, MNZM • Mark Cross • John Dell • John Leuchars • Doug McKay, ONZM • Graeme Milne, ONZM • Rukumoana Schaafhausen
Slide 5: Agenda
GENESIS ENERGY ANNUAL SHAREHOLDER MEETING 2015 AGENDA • Chairman’s Overview of Results • Chief Executive’s Report • Questions • Resolutions and Voting • Final questions • Morning Tea
Slide 6: Your Company
GENESIS ENERGY ANNUAL SHAREHOLDER MEETING 2015 YOUR COMPANY • Market leading electricity and gas retailer • Diverse revenue streams from retail, generation and Kupe • Flexible and able to meet variety of market conditions • Tight control on operational and capital spending
Slide 7: 2015 Highlights: A Strong Year
GENESIS ENERGY ANNUAL SHAREHOLDER MEETING 2015 2015 HIGHLIGHTS A STRONG YEAR • Genesis Energy has been focused on delivering a strong performance in the Company’s second year following listing • Despite a year of continuing challenges, the Company delivered a good result • Key financial metrics in F
Slide 8: Tangible Change
GENESIS ENERGY ANNUAL SHAREHOLDER MEETING 2015 TANGIBLE CHANGE • Energy markets are changing fast around the world • More competition for customers from major and niche players • Dry summer and autumn did not cause supply issues or wholesale price peaks • Global oil prices stayed low
Slide 9: Meeting the Challenge
GENESIS ENERGY ANNUAL SHAREHOLDER MEETING 2015 MEETING THE CHALLENGE • Company is meeting challenges with revised approach • Incremental change will not deliver the growth required • Commitment to change is tangible • More value from core activities • Establishing platforms for growth • Broadening o
Slide 10: Making Progress
GENESIS ENERGY ANNUAL SHAREHOLDER MEETING 2015 MAKING PROGRESS • Focused on acquisition and retention of customers • Innovative products and services • Set a retirement date for Huntly Rankine coal/gas units • Exited unwanted coal supply agreement • New ventures group established with focus on solar
Slide 11: Dividends
GENESIS ENERGY ANNUAL SHAREHOLDER MEETING 2015 Dividends Declared and Free Cash Flow Dividends Free Cash Flow $250m $211m $198m $200m $156m $162m $160m Dividends Declared $150m $130m $114m $100m $50m $0m DIVIDENDS $0m FY2012 FY2013 FY2014 FY2015 Payout as % - 73% 80% 81% of FCF • The final dividend
Slide 12: 2015 Operational Performance
GENESIS ENERGY ANNUAL SHAREHOLDER MEETING 2015 2015 OPERATIONAL PERFORMANCE Albert Brantley Chief Executive 12
Slide 13: Your Executive Team
GENESIS ENERGY ANNUAL SHAREHOLDER MEETING 2015 YOUR EXECUTIVE TEAM • Albert Brantley Chief Executive Officer • Maureen Shaddick General Counsel and Company Secretary • Andrew Donaldson Chief Financial Officer • David Goadby General Manager Retail • Tracey Hickman General Manager Generation • Dean Sc
Slide 14: Electricity Customers
GENESIS ENERGY ANNUAL SHAREHOLDER MEETING 2015 ELECTRICITY CUSTOMERS • Market share of electricity customers maintained • Pressure on customer numbers from competition • Energy Online is showing consistent monthly growth • Switching rates have stabilised • Providing new, easy to understand, products
Slide 15: Gas Customers
GENESIS ENERGY ANNUAL SHAREHOLDER MEETING 2015 GAS CUSTOMERS • Pressure to switch in retail gas market • Maintained leading market share of 40 per cent • Unique Gas Value Package • LPG customer accounts continue to grow • 14,000 bottled LPG customers, up 17 per cent
Slide 16: Generation Performance
GENESIS ENERGY ANNUAL SHAREHOLDER MEETING 2015 Annual Generation Profile 9,000 8,000 7,000 Hau Nui Wind 6,000 Tekapo A & B Waikaremoana 5,000 GWh Tongariro 4,000 Huntly Unit 6 GENERATION 3,000 2,000 Huntly Unit 5 Huntly Rankine Units PERFORMANCE 1,000 0 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 • To
Slide 17: Changes at Huntly
GENESIS ENERGY ANNUAL SHAREHOLDER MEETING 2015 CHANGES AT HUNTLY • Generation market is now over-built • Investment in National Grid has created a more efficient system • Better water management by all parties • Cost to operate and maintain Huntly Power Station continues to climb • Permanently retir
Slide 18: Kupe Oil and Gas
GENESIS ENERGY ANNUAL SHAREHOLDER MEETING 2015 KUPE OIL AND GAS • Kupe continued source of earnings Kupe Gas Sales Volumes (PJ) • The increased oil production in FY2015 and the Quarterly Sales Volumes Rolling 12 months sales volumes (RHS) Company’s hedging approach helped to offset the 2.5 8.0 impac
Slide 19: Health and Safety
GENESIS ENERGY ANNUAL SHAREHOLDER MEETING 2015 HEALTH AND SAFETY The safety of our employees and workplace remains a priority • Genesis Energy is committed to a zero harm work environment • Three lost time incidents in FY2015 (2 in FY2014) and no serious incidents
Slide 20: Our Communities
GENESIS ENERGY ANNUAL SHAREHOLDER MEETING 2015 OUR COMMUNITIES Community investment is aligned to our business activity and values • Strong relationship with iwi in each generation community • Premier programme – Schoolgen – grows to 81 schools • Whio Forever partnership with Department of Conservat
Slide 21: Results Summary
GENESIS ENERGY ANNUAL SHAREHOLDER MEETING 2015 RESULTS SUMMARY • NPAT was better than the Prospectus forecast – dividends are in line • EBITDAF of $344.8m was up 12% on FY2014 and at the top end of $330m to $345m April 2015 range • Low international oil prices • The generation mix at the end of FY20
Slide 22: EBITDAF Growth
GENESIS ENERGY ANNUAL SHAREHOLDER MEETING 2015 EBITDAF bridge from FY2014 to FY2015 $400m $32m ($13m) $14m $345m $350m $308m $5m $300m $250m $200m EBITDAF GROWTH $150m FY2014 EBITDAF Customer Experience Energy Management Oil & Gas Corporate FY2015 EBITDAF Earnings were up 12 per cent on the previous
Slide 23: Balance Sheet
GENESIS ENERGY ANNUAL SHAREHOLDER MEETING 2015 BALANCE SHEET • Stay in business capital expenditure decreased 20% to $43.6m which was at lower end of $40m to $50m range guided to in April 2015 • Despite the increased dividends paid in FY2015, net debt was down 6% to $905m • Net debt remains within t
Slide 24: Dividends
GENESIS ENERGY ANNUAL SHAREHOLDER MEETING 2015 Dividends Declared and Free Cash Flow Dividends Free Cash Flow $250m $211m $198m $200m $156m $162m $160m Dividends Declared $150m $130m $114m $100m $50m $0m DIVIDENDS $0m FY2012 FY2013 FY2014 FY2015 Payout as % - 73% 80% 81% of FCF • The final dividend
Slide 25: Outlook
GENESIS ENERGY ANNUAL SHAREHOLDER MEETING 2015 OUTLOOK Recent announcements will set tone for coming years • Expect competition for retail gas and electricity customers to continue • Generation capacity could tighten over the long term with annual closures • Genesis Energy will focus on creating mor