GNE - Genesis Energy

[Sideshow Bob]

Dirty coal as well ..Transported roughly 7000 km

Yep, imported from other countries. Carbon emissions are less that way right, burning their coal not our coal???

No royalties, wages in the local economy, or PAYE.

[Sideshow Bob]

Dirty coal as well ..Transported roughly 7000 km

Sigh......duplication

[winner69]

Changed their guidance

Didn’t seem exciting so I presume it’s a profit downgrade

Bugger

http://nzx-prod-s7fsd7f98s.s3-websit...863/350572.pdf

[JohnnyTheHorse]

Changed their guidance

Didn’t seem exciting so I presume it’s a profit downgrade

Bugger

http://nzx-prod-s7fsd7f98s.s3-websit...863/350572.pdf

Previous guidance was $415m - 425m, new guidance $405m - $410m. However note it includes a $27m impairment from the FPO contract which will deliver $50-$100m of benefits in following years. So 'normalise' that and it's actually an upgrade?

Interesting to see Kupe is being kept given the current gas situation. I know of manufacturers absolutely scrambling to install diesel backups on their gas powered systems... that's the current state of things.

[Beagle]

Yes its an upgrade. Old guidance at mid point was $420m - $27m carbon offset generating future returns you mentioned = $393m.
New guidance at midpoint is $407.5m so that's a $14.5m upgrade.

Far more importantly they're keeping Kupe which as noted in previous posts I've made is the result I was hoping for.

I bought a few more quite recently and will probably look to do another top-up in due course.

[Beagle]

Managed to do a nice top up on the dip earlier this week. Country will be relying on Huntly late into this decade in my opinion.

[winner69]

Told to pay Beach $53m plus for

Unlikely to affect dividend they say ……but betcha not an increased one.

http://nzx-prod-s7fsd7f98s.s3-websit...517/351364.pdf

[winner69]

What’s wrong with this outfit

Found $27m they had to count a few weeks ago and now this $53m

Wonder what else in ‘uncounted’ things are lurking in the shadows

Disc: I know very little about how the industry operates …basically ignorant

[peat]

Arbitration was based on whether carbon liability for the gas supplied was with the producer (Beach) or the buyer (Genesis).

weird to think this was unknown right up until now. surely they're not the first two companies to be in this situation ,

[winner69]

'Invested' in GNE as a bond proxy (as know very little about industry)

Yield stable around 5% at the moment. The gap between yield and 5 yr govt stock (risk factor) is below 4% points and about the smallest its been

Where to from here - depends on how interest rates move and how 'risky' the market sees GNE. Can't see an increased dividend in near future

Popular opinion is increasing interest rates - not good for share price

A coupleof charts tracking my bond investment

Disc: bought these bonds at a yield of 6.1% so have some decent capital gains to soften any blow .....but could turn into a 'bond trader' any day as they seem to churn out bad news every few weeks