Genesis Energy Ltd.

Overview Key strengths Key risks Solid market position as a major New Zealand electricity and gas retailer, with modest generation capacity. Significant capital expenditure (capex) in renewable developments. Vertically integrated business provides some natural hedge against volatile market prices. Strong retail competition. Renewable developments will replace higher cost thermal generation and reduce carbon exposure. Exposed to volatility in the wholesale electricity market and global commodity prices. The Huntly Unit 5 outage is expected to have a financial impact of NZ$20 million-NZ$30 million in fiscal 2024 (ending June 30.), leading to a higher debt-to-EBITDA ratio of 2.7x. The credit metrics are likely to improve in the following two years due to higher gas volumes from Kupe, Unit 5 restart and lower

...We expect Genesis Energy Ltd.'s debt-to-EBITDA ratio to trend toward the low to mid 2x-3x range over the next three years. The Huntly Unit 5 outage is expected to have a financial impact of NZ$20 million-NZ$30 million in fiscal 2024 (ending June 30.), leading to a higher debt-to- EBITDA ratio of 2.7x. The credit metrics are likely to improve in the following two years due to higher gas volumes from Kupe, Unit 5 restart and lower generation costs with the commencement of the Tauhara and Lauriston Power Purchase Agreements (PPA). We currently...

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