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Highlights

  • In 1HFY25, GNE recorded 27% YoY revenue growth in reaching NZD 1,753.8 million.
  • NPAT nearly doubled to NZD 70.3 million in 1HY25, up 84% YoY.
  • FY25 EBITDAF guidance set at NZD 460 million and capital forecasted to reach NZD 130–140 million.

Genesis Energy Limited (NZX:GNE), a diversified energy company, has posted 27% YoY jump in revenue in the first half of the financial year 2025 (1HFY25), attributed to higher wholesale prices in both thermal and renewable generation, alongside strategic retail pricing initiatives. Meanwhile, net profit after tax (NPAT) nearly doubled, reaching NZD 70.3 million compared to NZD 38.3 million in 1HFY24. However, operating expenses saw a rise of 6% YoY to NZD 192.5 million.

Despite higher profitability, cash reserves declined to NZD 102 million as of 31 December 2024, from NZD 192.8 million on 30 June 2024. The company also announced an interim dividend of 7.13 cents per share.

Industry Dynamics

New Zealand’s electricity demand is set to rise significantly, with projections from the Ministry of Business, Innovation & Employment (MBIE) estimating a growth of 35.3% to 82.0% by 2050, reaching 62.1 TWh. This growth will be driven by the commercial and industrial sectors in the near term, with transport electrification playing a larger role from the late 2030s as electric vehicle (EV) adoption increases. The transition from fossil fuels to electricity for heating and other applications could further escalate demand, pushing peak electricity needs to between 9.1 GW and 12.5 GW by 2050.

Investment Focus and Renewable Strategy

Genesis Energy’s renewable generation strategy is focused on solar development due to its rapid deployment capabilities, lower capital expenditure, and improving economics. The company has reaffirmed its FY 2025 EBITDAF guidance at approximately NZD 460 million while adjusting its capital expenditure forecast to NZD 130–140 million.

To bolster national energy security, Genesis Energy is actively exploring options for its Huntly Power Station. Furthermore, the company remains committed to its 8by28 initiatives, aiming to achieve multiple milestones in the second half of FY25.

Share performance of GNE

GNE shares closed at NZD 2.205 per share on 27 February 2025. In one year, GNE’s share price has dropped by almost 8.10%, and in a month, it has increased by approximately 3.18%.

52-week high of GNE is NZD 2.53, recorded on 26 February 2024 and 52-week low is NZD 2.05, recorded on 6 June 2024.

Resistance and support summary

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 27 February 2025. The reference data in this report has been partly sourced from EODHD/Others.

Technical Indicators Defined:

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.