GNE - Genesis Energy

[bull....]

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. Come one bull..GNE yeild is around 6-7 persen!! the best in the class!!

higher dividend yield is gne but better growth prospects and possibly sustainable dividend is mcy. and gne will need to transition from huntly to wind as they mentioned and wind is questionable on sustainable earnings. i owned gne before but have moved to mcy now

[King1212]

higher dividend yield is gne but better growth prospects and possibly sustainable dividend is mcy. and gne will need to transition from huntly to wind as they mentioned and wind is questionable on sustainable earnings. i owned gne before but have moved to mcy now

Yup bull...keep your MCY 3persen yield....

[trader_jackson]

Would that not only be the case if there was no uptake of the DRP...? Assuming say 30% uptake there would be no need to borrow, would there...?

At half year it was 20%, I doubt it would be close to 30% now, and issuing more shares simply means less dividend will be able to be paid per share in the future.

[BigBob]

At half year it was 20%, I doubt it would be close to 30% now, and issuing more shares simply means less dividend will be able to be paid per share in the future.

Ah, yes longer term dilution... Good point...

[Beagle]

http://nzx-prod-s7fsd7f98s.s3-websit...324/328796.pdf

Very resilient performance is extraordinarily low hydrology conditions. Very impressive. Dividend increased again.

Gross yield a whopping 8% is outstanding. Huge 33% upgrade to Kupe's reserves and excellent outlook with a forecast of $405m EBITDAF at mid point, up from $356m this year.

Expenses well controlled and major upgrade to Kupe reserves marks this out as a very reliable dividend income stream for the foreseeable future.

That sort of yield for a reliable utility is remarkable when interest rates are headed to zero.

Disc: I doubled my stake earlier this week and am looking for more.

Long term I expect GNE to be the least affected of the gentailiers by Tiwai's closure.

[bull....]

notice in there statement they also said if smelter closes

[RTM]

Based on today's numbers, GNE probably is the least attractive of all gentailers imo...

Perhaps. But their assets seem pretty solid. Good bunch of HYDRO, north and south island, some wind and Huntly should NZ need thermal capacity in the event of dry periods. I have tried not to pick which one to own, I think I have some of them all. I recall reading in here years ago that in the event of one power company having a down year, then another one is probably going to do OK / better. Not expecting huge share price appreciation, just a steady contribution to my dividend stream. Happy to continue to hold.

[iceman]

http://nzx-prod-s7fsd7f98s.s3-websit...324/328796.pdf

Very resilient performance is extraordinarily low hydrology conditions. Very impressive. Dividend increased again.

Gross yield a whopping 8% is outstanding. Huge 33% upgrade to Kupe's reserves and excellent outlook with a forecast of $405m EBITDAF at mid point, up from $356m this year.

Expenses well controlled and major upgrade to Kupe reserves marks this out as a very reliable dividend income stream for the foreseeable future.

That sort of yield for a reliable utility is remarkable when interest rates are headed to zero.

Disc: I doubled my stake earlier this week and am looking for more.

Long term I expect GNE to be the least affected of the gentailiers by Tiwai's closure.

Well said Beagle. For those very reasons I bought a few more yesterday and am happy I did. Despite Tiwai issues, we will be seeing fairly reliable dividends from the Gentailers in the coming few years at rates that have to be regarded as very good in today's World climate. We can debate which ones are the best but I suggest a spread amongst them makes sense at present.

Discl: Hold GNE and CEN

[Beagle]

Thanks Iceman and yes its probably wise to have a good spread of these gentailiers.

I love dividends so I simply choose the gentailier with the broadest spread of assets and the highest yield. From memory Kupe was gradually going to wind down over the next 16 years which would eventually affect their ability to pay a dividend. With this massive reserve upgrade, (and I am confident it won't be the last upgrade), I think the field may last longer than I will so I am happy to collect 8% forever and a day with interest rates headed to zero.

The dividend reinvestment plan is a great way to boost one's yield. the 2.5% discount effectively boosts the 8% yield to 8.2% (8 / 0.975).
I think 8.2% is a phenomenal yield for a reliable utility company so I added more this morning and continue to fully subscribe to the dividend reinvestment plan.
I got offered 0.25% per annum to reinvest my Kiwibonds the other day for another 6 months. 0.25% or 8.2%...that has to be the simplest decision I can recall in recent years.

[King1212]

I will do so master Beagle!