Genesis Energy 2020 Full Year Financial Results

GENESIS DELIVERS EARNINGS OF $356 MILLION AND A FULL YEAR DIVIDEND OF 17.20cps * EBITDAF $356 million, down 4% on FY19 of $369 million * Net Profit $46 million, down $13 million on FY19 of $59 million * Underlying Earnings $53 million, down $11 million on FY19 of $64 million * Earnings Per Share 4.47 cents, down 1.36 cps from FY19 of 5.83 cps * Underlying Earnings Per Share 5.14 cents, down 1.21 cps fromFY19 of 6.35 cps * Final Dividend Per Share 8.675 cents, up 1% on FY19 of 8.6 cents * Full Year Dividend Per Share 17.20 cents, up 1% on FY19 of 17.05 cents * Free Cash Flow $168 million, down 6% on FY19 of $178 million Genesis regularly flexed its portfolio of fuels and generation assets to ensure a solid result during a year of exceptionally dry North Island conditions, multiple planned and unplanned market outages and the disruption of COVID-19. Genesis Energy (GNE) today announced that it delivered EBITDAF for the year of $356 million and Net Profit (NPAT) of $46 million, with underlying earnings of $53 million. Genesis declared an increased final dividend of 8.675 cps, and a full year dividend increase to 17.20 cents per share. "The second half of FY20 tested our portfolio flexibility through multiple gas and transmission outages, exceptionally low North Island hydro catchment inflows and the COVID-19 lockdown. Despite those uncontrollable events, Genesis people demonstrated great resilience and adapted quickly to support our customers through difficult conditions," said Genesis Energy CEO Marc England. "Overall, hydro generation fell by 491 GWh versus the year prior. This meant Huntly Power Station's back-up generation was called upon more regularly to stabilise wholesale electricity prices for all market participants." On top of these volatile conditions was the national COVID-19 disruption, which affected industrial and commercial electricity consumption, but was partially offset by an increase in consumption from residential customers. "Our retail business has continued its momentum from the first half, backed by increased uptake of our digital products and promotions, such as Power Shout, which saw a record 141,000 customers participate in May. Genesis now has 121,000 dual fuel customers, an increase of 3%. Our new customer care package, launched at the end of 2019, was boosted by $250,000 to support our vulnerable customers facing hardship during the COVID-19 lockdown." "Genesis' uniquely diversified generation portfolio, flexible retail products and strong customer support networks have demonstrated our value to all market participants. I am proud to say that our business strategy has been thoroughly stress tested this year and has performed under the challenging conditions. "We are continuing our Future-gen strategy with a target to develop 2,650 GWh of new renewable generation options that will enable us to transition our baseload thermal generation portfolio to renewables. We will achieve the first 450 GWh of this, as Waipipi Wind Farm comes online in early 2021. Having already removed 1.8 million tonnes of CO2 from our portfolio in the last 10 years, Future-gen will enable us to further reduce our carbon emissions by another 1 million tonnes in the next 5 to 10 years. The closure of the Tiwai smelter, if it goes ahead, represents an exciting prospect to potentially accelerate our Future-gen strategy." Final dividend and a dividend reinvestment plan The Genesis Board has declared a final dividend of 8.675 cents per share, which has a record date of 11 September 2020 and will be paid on 25 September 2020. Genesis is pleased to confirm the continuation of its dividend reinvestment plan to provide shareholders a cost-effective way to reinvest in Genesis' growth strategy. Shareholders will have until 14 September 2020 to opt into the dividend reinvestment plan. FY21 guidance EBITDAF guidance for the full year ended 30 June 2021 is in a range of between $395 million to $415 million. This is subject to hydrological conditions, any material events, one-off expenses or other unforeseen circumstances. Genesis continues to target its strategic goal of $400+ million EBITDAF in FY21. Capital expenditure guidance for FY21 is up to $95 million. Further information on the company's operations and financing can be found in the investor presentation of the full year results and the Company's Annual Report at nzx.com/instruments/GNE and www.genesisenergy.co.nz/reports-and-presentations ENDS For media enquiries, please contact: Allan Swann External Communications Manager M: 027 211 4874 For investor relations enquiries, please contact: Cameron Parker Investor Relations Manager M: 021 241 3150 About Genesis Energy Genesis Energy (NZX: GNE, ASX: GNE) is a diversified New Zealand energy company. Genesis sells electricity, reticulated natural gas and LPG through its retail brands of Genesis Energy and Energy Online and is New Zealand's largest energy retailer. The Company generates electricity from a diverse portfolio of thermal and renewable generation assets located in different parts of the country. Genesis also has a 46% interest in the Kupe Joint Venture, which owns the Kupe Oil and Gas Field offshore of Taranaki, New Zealand. More information can be found at www.genesisenergy.co.nz End CA:00358324 For:GNE Type:FLLYR Time:2020-08-20 08:30:53