GNE - Genesis Energy

[Beagle]

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 ,

Good point. I'm also scratching my head, how could this not have been determined already by other companies in their field ?

Payout is ~ 5 cps. I am happy to take the final dividend not being impacted at face value as GNE have a multi year track record of steadily increasing dividends.

[winner69]

Good point. I'm also scratching my head, how could this not have been determined already by other companies in their field ?

Payout is ~ 5 cps. I am happy to take the final dividend not being impacted at face value as GNE have a multi year track record of steadily increasing dividends.

Hope they don't 'marginally adjust divie;

Suppose 1.2% pa counts as steadily increasing dividends

Hadn't noticed that before

What's inflation been over last 5 years?

[winner69]

Revised guidance is ebitdaf of $358m - about the same as last years $356m

Might trim the expected divie back seeing Interim was 0.075 cents higher than previous interim

[Nor]

The greenies in Australia were wanting Woodside etc to be responsible for the emissions of their customers, and in other countries too. Scope 3 emissions. This ruling appears contrary to that.

[Beagle]

Off the reserve bank inflation calculator if the benchmark is 100 in Q2 2016 its 110.09 now so the compound effect of the last 5 years inflation is just a fraction over 10%.

RBNZ inflation calculator is here https://www.rbnz.govt.nz/monetary-po...on-calculator/

Not sure if GNE dividends have kept up with inflation or not ? (which I remember was the stated goal of their dividend plan when they listed).

Crunched a LOT of numbers today, too tired to crunch any more.

[winner69]

Off the reserve bank inflation calculator if the benchmark is 100 in Q2 2016 its 110.09 now so the compound effect of the last 5 years inflation is just a fraction over 10%.

RBNZ inflation calculator is here https://www.rbnz.govt.nz/monetary-po...on-calculator/

Not sure if GNE dividends have kept up with inflation or not ? (which I remember was the stated goal of their dividend plan when they listed).

Crunched a LOT of numbers today, too tired to crunch any more.

CPI +10% or 1.9%pa / GNE div +6.1% or 1.2%pa ....hmmm

[tommy_d]

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 ,

based on their contract, rather than the peculiarities of the emissions trading scheme, I would imagine

@Nor and others if interested, the permit holders for natural gas mining are required to report emissions from gas mined (nz ets is upstream, so considered as the emissions from the mined gas when used) and pay ETS costs. Here and here for details:
https://www.legislation.govt.nz/act/...LM1662811.html
https://www.legislation.govt.nz/act/...LM1662841.html

[Beagle]

Excellent presentation of the information relevant to investors and avoids the endless ESG overkill of some other Gentailiers http://nzx-prod-s7fsd7f98s.s3-websit...944/353149.pdf

$358m EBITDAF as expected and impacted by some one-off's that have been discussed already.

Interesting to note EBITDAF guidance of a whopping $420-$440m for FY22 and initiatives that will see the use of coal dramatically cut to the point where its almost not used by 2025.

Kupe compression project on time and on budget and looking at drilling to expand the field.

Final dividend of 8.8 cps, (80% imputed) seventh year of dividend growth.

My estimate of FY22 dividends is 17.6 cps 80% imputed = 22.7 cps gross and on $3.40 that gives a gross yield of 6.7%.

Happy holder.

[percy]

Have had my doubts,but I do enjoy the divies.

[winner69]

Final dividend of 8.8 cps, (80% imputed) seventh year of dividend growth.
.

Suppose dividend growing at 1.2% pa since they floated is pretty good

Better than going backwards