Slide 1: Annual Financial Results – Twelve month period to 30 June 2010
Genesis Energy Annual Financial Results Twelve month period to 30 June 2010 Albert Brantley Chief Executive Mark Anderson General Manager Finance
Slide 2: Contents
P.2 Contents Overview of full year results 2009/2010 03 Comments on financial results 04 Production and sales overview 05 Hydrology drives prices 06 Customer growth 08 Strategic challenges 09 Outlook 10 Financial review 11
Slide 3: Overview of FY10 result
P.3 Overview of FY10 result Performance Summary $m 30 June 2010 30 June 2009 Operating revenue 1,895 1,957 Operating expenses 1,646 1,755 Earnings before interest, taxation, depreciation and amortisation 249 202 Net profit after tax 69 (136) Underlying earnings 88 82 Total assets 2,532 2,585 Total l
Slide 4: Comments on results
P.4 Comments on results • EBITDAF result excellent given 6% reduction in generation volumes • Ancillary revenues strong during year • Contribution from Kupe in last quarter • Average wholesale price down 8.8% to $61.88/MWh • Fuel consumption down 7.8% due to lower thermal generation • Average fuel b
Slide 5: Production and sales
P.5 Production and sales Performance Summary 30 June 2010 30 June 2009 Thermal Generation GWh 5,761 6,276 Hydro and wind generation GWh 1,815 1,770 Total Generation GWh 7,576 8,046 Average wholesale electricity price $/MWh 61.88 67.82 Retail Sales GWh 6,378 6,970 Wholesale and retail gas sales PJ 10
Slide 6: Hydrology drives prices
P.6 Hydrology drives prices Haywards Average Price vs NZ Storage
Slide 7: We have re-focused our business to deliver greater value for the shareholder
P.7 We have re-focused our business to deliver greater value for the shareholder on an on-going basis
Slide 8: Customer growth
P.8 Customer growth • Customer acquisition campaign in South Island • Winning back customers with competitive price offers • Brought Customer Contact Centre in-house • Advanced Meters ▪ 74,000 installed – now averaging 10,000 per month ▪ Reached scale to develop new products and services
Slide 9: Strategic challenges
P.9 Strategic challenges • Electricity Industry Bill leads to Tekapo negotiations • Developed new asset management strategy for Huntly Units 1 to 4 • Improving business practices to deliver greater efficiency and revenue gains Canal linking Tekapo A and B power stations
Slide 10: Outlook
P.10 Outlook • Continued competition in Retail markets • ETS effective from July 2010 • Increasing revenues from Kupe • Greater flexibility from generation plant • Acquisition and integration of Tekapo A and B into portfolio • Lodge consents for Castle Castle Hill Wind Farm site in Wairarapa Hill Wi
Slide 11: Financial review
P.11 Financial review • Revenue • EBITDAF and NPAT • Cash flow • Assets • Debt • Financial outlook Kupe production facility in operation
Slide 12: Revenue
P.12 Revenue Revenue & Total Assets ($m) Revenue Breakdown - 2009/10 ($m) $3,000 $2,500 $132 $43 $2,000 $1,500 Electricity $1,000 Gas $500 Other $0 2006 2007 2008 2009 2010 Total Assets Operating Revenue $1,721 • Revenue down slightly due to lower Retail volumes • Kupe revenue of $32m including inte
Slide 13: EBITDAF and NPAT
P.13 EBITDAF and NPAT • Kupe EBITDAF $26m • Strong contribution from EBITDAF and NPAT ($m) production with a higher margin and lower operating $300 costs $200 • Loss in 2009 due to $100 downwards revaluation of $0 Huntly units 1 to 4 and 6 -$100 2006 2007 2008 2009 2010 • Tax adjustments: -$200 EBIT
Slide 14: Cash flow
P.14 Cash flow • Operating cash flows reflect strong result for the year Cash flow $300 • Investing cash flows lower $250 due to completion of Kupe $200 • Other than Tekapo $150 acquisition, no significant $100 capital expenditure in short $50 term $0 2006 2007 2008 2009 2010 Operating in-flows Inve
Slide 15: Assets
P.15 Assets • Total assets slightly down on Assets - 2009/10 2009 • Kupe investment 23% of total $363 Current Assets $523 non current assets $22 Other Term Assets • Coal stockpile increased $129 Property, plant and $20.8m in value to $107.4m equipment Intangible assets Oil and gas assets $1,496
Slide 16: Debt
P.16 Debt • Debt has declined after a period of significant Debt investment activity $700 35% • Total committed funding $600 30% facilities of $920m at 30 $500 25% June 2010 $400 20% • Drawn funds of $532m at $300 15% 30 June 2010 $200 10% $100 5% • Funding maturities spread $0 0% from October 2011
Slide 17: Financial outlook
P.17 Financial outlook • Well positioned with strong balance sheet • $575m of Bank Facilities entered into in July 2010 for Tekapo A & B acquisition and refinancing of bank facilities maturing in 2011 • Competition in Retail electricity and gas markets likely to impact price increases • 2011 full ye
Slide 18: Thank you.
P.18 Thank you.