GNE - Genesis Energy

[trader_jackson]

Good news for Genesis? https://www.nzx.com/companies/GNE/announcements/268738
(terrible for solid energy!)

Not really surprising, so I assume with this contract being terminated there really is no chance they will restart Huntly? (as is being speculated - restarting the coal/main part they recently shut down)

[stoploss]

Good news for Genesis? https://www.nzx.com/companies/GNE/announcements/268738
(terrible for solid energy!)

Not really surprising, so I assume with this contract being terminated there really is no chance they will restart Huntly? (as is being speculated - restarting the coal/main part they recently shut down)

Not unless the price of electricity goes up heaps .......

[xafalcon]

I believe they can run those boilers on either coal or gas, and GNE has access to plenty of gas which I believe it is contracted to take-or-pay. So they have ditched their coal contract, which was probably contracted at relatively high price, and can replace with gas that that they will pay for whether they use it or not.

Seems like very good news

[Beagle]

I believe they can run those boilers on either coal or gas, and GNE has access to plenty of gas which I believe it is contracted to take-or-pay. So they have ditched their coal contract, which was probably contracted at relatively high price, and can replace with gas that that they will pay for whether they use it or not.

Seems like very good news

Yes it is

[huxley]

Topped up the IPO shares last Friday @ 1.69 happy to hold tight and collect the dividend (with or without imputation credits ). Cheers for all the interesting discussions on here!

[xafalcon]

https://nzx.com/companies/GNE/announcements/268996

results look good

[sb9]

Yeah, good results I reckon. Not bad 16c fully imputed divvy for this FY, but bot going to be the case in future.

[trader_jackson]

They do expect to increase the dividend (this has been a key concern for many) but it may not be fully imputed longer term (say in 2-3 years time).

Overall very good results, slightly ahead of expectations, most oil prices hedged, and dividend confirmed to grow over time, no reason why this stock shouldn't be above the $2 mark again!

[Harvey Specter]

Yeah, good results I reckon. Not bad 16c fully imputed divvy for this FY, but bot going to be the case in future.

I know Roger(??) is concerned about the impuation credit position going forward so lets have a more detailed look.

Per the stats on p81, they have 0.1m of IC's so not enough to impute a dividend so they will have to pay more tax (before 31 March 2016) to be able to pay this dividend.

But lets look at their tax position. Current Tax is an asset of $16.2m which given their third installment wasn't due to after year end, means they have already prepaid, not just their final P3 payment, but $16m in excess of that, to be able to be used for 2016. And how much tax do they have to pay a year. Current tax expense per the notes is only $16m, so if 2016 is the same, then they have already prepaid their full 2016 tax liability, even though they need to make an additional payment to be able to impute the 2015 final dividend (that means to be able to impute the final 2015 dividend, they will be paying their 20167 tax liability early!!!). This is not sustainable unless they expect their tax liability to increase significantly going forward or they change their imputation ratio.

[Traderx]

Very undervalued

Excellent progress on lowering cost to serve.

No mention on future development outlook/generation mix, when are they going to start to build part of Castle Hill? there is some room in the market for a start on this once rankines close and carbon prices start to increase significantly.

I say this is when you look at the graph of unit 5 + hydro vs customer demand you see they will become a net neutral to slightly short generator (a la trustpower). Not necessarily a bad thing but quite a big change.

Anyway overall pretty happy.

I kind of think of Kupe as a personal hedge to my own petrol consumption so not to fussed with what happens medium term to prices in that regard.