GNE - Genesis Energy

[Bob50]

This company goes X dividend on the 23rd September. Seems to be in a price dip. I have bought a couple of bundles today of it today.

[Davexl]

Gotta love Genesis!

From this mornings Herald...

Forsyth Barr said the August 9 blackouts and subsequent fallout had dominated the month.
There had also been unexpected Cook Strait cable constraints and record carbon prices.

"We are more cautious on the near-term outlook for the electricity sector than we have been historically, with regulatory/political risk rising a notch in August and the spread between dividend yields and market interest rates falling to a record low," Forsyth Barr said.

Forsyth Barr has given Mercury, Meridian and Trustpower an "underperform" rating.
Genesis Energy is the only stock rated as "outperform" by the broker.

August 2021 was "probably the most remarkable month" in the electricity market since it began 25 years ago, with three significant and unusual events - the August 9 blackouts, the level 4 lockdown and constraints on the HDVC link.

These events occurred against a backdrop of improving hydro storage conditions with hydro storage lifting from 109 per cent of average at the beginning of the month to 127 per cent of average by month end.

"Of these events, the blackouts have the potential for the greatest sector-wide impacts, with four investigations taking place," Forsyth Barr said.

In addition to the three wholesale electricity market events, on September the Government held its third NZ carbon unit auction which saw the spot price spike to $59 a tonne.

Disclaimer - Held

[winner69]

Tracking my GNE de facto term deposit - like a 'bond'

Yield currently 5.3% (nett) but whats a bit of a worry is that the gap between this and the 5 year government bond rate has shrunk to 3.7% points. This is the smallest gap since GNE floated - the average has been 4.9% points. One could say you are currently not being as well rewarded for risk as you have normally been.

Maybe GNE stock is over priced at the moment

[Beagle]

5.3% net with 80% imputation credits = 6.8% gross. Where else are you going to get that yield from a safe utility company ?

I wish the DRIP was still operational.

[winner69]

5.3% net with 80% imputation credits = 6.8% gross. Where else are you going to get that yield from a safe utility company ?

I wish the DRIP was still operational.

Fantastic yield ……Watching the price of the ‘bond’ though …don’t want to lose part of the deposit of the term deposit

[Beagle]

http://nzx-prod-s7fsd7f98s.s3-websit...963/356959.pdf

Kupe compression project completed on time and on budget. Excellent result considering supply chain issues.
Good for GNE and good for the country having gas production back to maximum capacity.

[winner69]

This gave me warm fuzzies -

Genesis continues to work to support our customers through the lockdown period. We extended our customer care programme, Manaaki Kenehi, and offered over 280,000 customers five hours of free power to use when they choose. As we have done before, late payment fees were suspended for customers under lockdown levels two and above."

[Beagle]

This gave me warm fuzzies -

Genesis continues to work to support our customers through the lockdown period. We extended our customer care programme, Manaaki Kenehi, and offered over 280,000 customers five hours of free power to use when they choose. As we have done before, late payment fees were suspended for customers under lockdown levels two and above."

http://nzx-prod-s7fsd7f98s.s3-websit...267/357358.pdf
Whole report looks good to me.

[winner69]

GNE share price at 6 month (maybe longer) low

Those increasing interest rates hurting big time? Or something else

I see 5 Yr Gvt Bonds gone from 1.66% two weeks ago to 2.44% today

So GNE yield keeps up share price falls ..my de facto TD looking a bit risky at the moment

[Beagle]

GNE share price at 6 month (maybe longer) low

Those increasing interest rates hurting big time? Or something else

I see 5 Yr Gvt Bonds gone from 1.66% two weeks ago to 2.44% today

So GNE yield keeps up share price falls ..my de facto TD looking a bit risky at the moment

I cashed my $2.90 term deposit in early at $3.90 a while back and took out a new one quite recently at ~ $3.40. New one is looking a bit sick. Not sure if I should put it out of its misery early or hold for the 7% gross yield.