How sustainable are Genesis's Profits (2016 Perspective)?
Quote:
Originally Posted by
Snoopy
It is now 'normalised result' reconciliation time. I am basing this calculation for the
normalised profit of the whole of Genesis Energy on the published "Consolidated Statement of Income", on p31 of AR2016
EBITDAF |
$335.3m |
less Emission Unit Trading Net Gain {$21.0m-$15.5m} |
($5.5m) |
less One off Gain on value of Turbine Parts |
($6.9m) |
Total: Normalised EBITDAF |
$322.9 |
less Net Finance Expense ($2.0m - $65.2m) |
($63.2m) |
less Depreciation, Depletion & Amortisation |
($127.5m) |
Total: NPBT (normalised) |
$132.2 |
less Income Tax @ 28% |
($37.0m) |
Total: NPAT (normalised) |
$95.2 |
Note that the
declared after tax profit for Genesis Energy over FY2016 was $184.2m. Yet the '
normalised profit' (repeatable profit, pulling out one off events), is only a little more than half this figure!
The above is an exercise I did on the FY2016 results. It is now two years out of date, and not being a shareholder any longer, I haven't repeated the exercise. However, it was clear at the time that the profitability of Genesis as declared was approximately twice the underlying profitability. That means that in the medium term, I would have expected Genesis's imputed dividends to halve. Of course this hasn't happened (yet). The lack of hydro storage has meant a very profitable time for Huntly. But this kind of weather event is not guaranteed to repeat and large capital expenditure is looming for Genesis if they wish to remain a top four gentailer. The further you look to the future the worse the picture looks.
Quote:
Originally Posted by
bull....
Many banks rush to cut term deposit rates, leaving few outliers and fewer options to lock in what were already considered low rates before they are trimmed even lower
Some of the cuts are substantial, exceeding -30 basis points
https://www.interest.co.nz/personal-...-fewer-options
get your income while you can
"Be greedy when others are fearful and fearful when others are greedy"
(Warren Buffett)
SNOOPY