Page 1

genesis MARKET RELEASE Date : 25 February 2021 NZX : GNE / ASX : GNE Genesis delivers strong first half EBITDAF of $ 217 million EBITDAF¹ Net Profit Underlying Earnings² Half Year - ended December 2020 $ 217 million $ 53 million $ 60 million Earnings Per Share 5.90 cents Underlying Earnings Per Share 5.83 cents Interim Dividend Per Share 8.60 cents Free Cash Flow³ $ 159 million Change year on year Up $ 50 million on HY20 of $ 167 million Up $ 44 million on HY20 of $ 9 million Up $ 44 million on HY20 of $ 16 million Up 4.19 cps from HY20 of 0.9 cps Up 4.30 cps from HY20 of 1.53 cps Up 0.9 % from HY20 of 8.525 cents Up 69 % on HY20 of $ 94 million Strong retail margins and lowered fuel costs help to offset reduced hydro inflows and challenging gas market conditions Genesis Energy ( ASX : GNE , NZX : GNE ) today announced that it delivered EBITDAF of $ 217 million for the first half of FY21 , an increase of 30 % on the same period last year . This is the Company's strongest first half performance since listing in 2014. Net Profit increased to $ 53 million driven by stronger performance across the Wholesale , Kupe and Retail segments . The Retail segment was boosted by stronger retail margins and the Wholesale segment by lower thermal fuel costs . The Kupe joint venture continues to produce a reliable return due to increased output supported by fewer planned outages in the first half . Net debt is down 5.5 % to $ 1,182 million and free cash flow is up 69 % to $ 159 million . An interim dividend of 8.60cps has been declared . The Dividend Reinvestment Plan has been suspended until further notice . “ Our retail business has delivered improved efficiencies without compromising on our vision to be ' customer's first choice for energy management ' . Our Energy IQ app now has 229,000 subscribers and , in 1H FY21 , we launched advanced gas metering and new Energy Plus plans , which have already given 183,000 customers access to more customised payment options . The last six months has also seen a reduction in disconnections and bad debt , largely due to measures implemented by the business as part of its response to the customer impact of COVID - 19 , " said Marc England , Chief Executive , Genesis Energy . " The Wholesale segment experienced low hydro inflows and a volatile gas market , affecting electricity supply and prices . Huntly Power Station was again called upon to support the market in anticipation of a La Nina dry year . However , the high fuel costs that impacted the bottom line this time last year have moderated . The Waipipi Wind Farm entering the market in November has produced 54GWh of 100 % renewable , zero emissions electricity as at 31 January 2021. It is due to reach its full 133MW capacity in March 2021 , displacing 250,000-370,000 tonnes of carbon emissions annually . " Genesis completed a significant capital investment project at the Tekapo B Power Station during the half . This improved generation efficiency at the station by 2.5 % . In addition , the $ 26.5 million seismic intake gate project was also completed , following a two - year programme of construction . This will enable the Tekapo Power Scheme to operate back at full capacity . 1 Earnings before net finance expenses , income tax , depreciation , depletion , amortisation , impairment , Fair Value changes and other gains and losses . Refer to consolidated comprehensive income statement in the 2021 interim report for a reconciliation from EBITDAF to Net Profit after tax . 2 Net Profit adjusted for non - cash fair value adjustments and business acquisition costs . 3 Free Cash Flow is EBITDAF , less finance expense , cash taxes paid and stay in business capital expenditure . 4 Kupe's 2P reserves estimate as at 30 June 2020 was 340.5 PJe , an increase of 21.5 PJe on the prior year's closing reserves estimate .