Highlights

  • Genesis Energy reported lower thermal output as hydro availability and portfolio flexibility increased during Q2 FY26.
  • FY26 Normalised EBITDAF guidance was revised upward following first-half performance delivery.
  • Progress continued across wind, solar and battery projects supporting medium-term portfolio flexibility.

Genesis Energy (NZX:GNE) delivered its second-quarter FY26 performance update on 22 January 2026, outlining operational outcomes shaped by favourable system conditions and active portfolio optimisation. During the quarter, increased hydro availability and disciplined fuel management reduced reliance on thermal generation while supporting financial performance.

Hydro generation for the quarter reached 740 GWh, an increase of 21 GWh compared with the prior corresponding period. Lake storage levels improved from 88% of average at 30 September to 122% of average by 31 December, improving dispatch optionality and enabling value-based generation decisions.

Thermal generation declined to 85 GWh in Q2, the lowest level recorded for the quarter. For the six months ended 31 December, thermal generation totalled 869 GWh, representing a record low for a half-year period. These outcomes reflected disciplined dispatch decisions in response to stronger hydro conditions.

Portfolio flexibility enabled incremental gas monetisation through increased sales to industrial customers. Electricity netbacks were reported at NZD 159 per MWh, reflecting a normalisation from Q1 while maintaining margin quality through pricing discipline and portfolio optimisation.

Customer Platforms and Systems Execution
Genesis continued execution of its billing and customer relationship management re-platforming programme. Release 1 was delivered for approximately 50,000 customers during the quarter, with Release 2 progressing as planned.

Renewable Development and Infrastructure Updates
During Q2, Genesis advanced its renewable development pipeline across wind, solar and battery assets. A Transpower connection application was submitted for the approximately 300 MW Castle Hill wind project, while more than 200 MW of early-stage onshore wind opportunities remain under review.

A framework agreement was executed with Yinson Renewables, providing exclusive rights for equity participation and/or offtake across an onshore wind pipeline exceeding 1 GW. Genesis also delivered final investment decision on the 136 MWp Edgecumbe solar farm and completed the acquisition of the 271 MWp Rangiriri solar project.

The Huntly battery energy storage system Stage 1 remains on track for commercial operations in Q1 FY27. Late-life optimisation and cost efficiency initiatives continued across Huntly and Kupe operations.

FY26 Guidance Update
Genesis updated its FY26 Normalised EBITDAF guidance to a range of NZD 490 million to NZD 520 million, compared with prior guidance of NZD 455 million to NZD 485 million. The revision reflects margin outcomes delivered during the first half of FY26, partially offset by higher operating costs associated with Gen35 execution. All other FY26 guidance remains unchanged.

Share Performance
Genesis Energy shares closed at NZD 2.45 on 22 January 2026, up 1.66% increase on the day of the update.