GNE - Genesis Energy

[Bobdn]

That's interesting. I didnt realise it had been calculated. I only have 1000 Genesis shares now, my last individual holding, so no longer follow.

I should also point out, my portfolio is 7 per cent Energy (real energy, the stuff that our prosperity has been built on not the other stuff) which is almost twice the weighting in the S&P500. Hence my default KiwiSaver fund. I don't need anymore plus I needed some bonds to balance everything out.

[xafalcon]

CEO Malcolm Johns tells us the so-called ESG discount applied to the Genesis share price will be unwound because of his recently announced strategy Â…. discount probably more than 30% now

If so GNE shareprice could be about $3.50 Â…divie yield of 5.7% Â….if he doesnÂ’t cut the divie again

I think Johns is in fantasy land

Where do you get this "stuff" from? When I listened to Malcolm (annual result presentation and on Sharsies podcast), I herd something different. I herd him say that GNE suffers from a SP penalty due to ESG, but I never herd him say anything about 30% or any percentage at all. When did he quantify it at 30%?

I never herd him say that the new strategy would remove the ESG penalty. Where did he state this? I did hear him say it is expected to reduce the penalty over time

And I also herd him say that GNE SP is burdened with this penalty, even though coal and gas are necessary to keep the lights on. He went on to say that the burden must be shared, and NZ must understand that it is not possible to eliminate thermal generation with our current and future generation mix. This was to be discussed with government and other generators

14cps / 350c = 4% yield before tax. Assuming 80% imputation and 33% personal tax rate = 3.8% after tax. GNE has been providing 100% IC's with recent dividends, but I see this as a short term benefit rather than an ongoing situation

I think the new CEO has been quite grounded in his comments that I herd. But I look forward to hearing your reply about when statements you attribute to him were made

[kiwikeith]

Where do you get this "stuff" from? When I listened to Malcolm (annual result presentation and on Sharsies podcast), I herd something different. I herd him say that GNE suffers from a SP penalty due to ESG, but I never herd him say anything about 30% or any percentage at all. When did he quantify it at 30%?

I never herd him say that the new strategy would remove the ESG penalty. Where did he state this? I did hear him say it is expected to reduce the penalty over time

And I also herd him say that GNE SP is burdened with this penalty, even though coal and gas are necessary to keep the lights on. He went on to say that the burden must be shared, and NZ must understand that it is not possible to eliminate thermal generation with our current and future generation mix. This was to be discussed with government and other generators

14cps / 350c = 4% yield before tax. Assuming 80% imputation and 33% personal tax rate = 3.64% after tax. GNE has been providing 100% IC's with recent dividends, but I see this as a short term benefit rather than an ongoing situation

I think the new CEO has been quite grounded in his comments that I herd. But I look forward to hearing your reply about when statements you attribute to him were made

I don't mind the odd spelling mistake but you misspelt heard as herd six times.

[RTM]

I don't mind the odd spelling mistake but you misspelt heard as herd six times.

Yep, he did. But it was a good post.

[xafalcon]

I don't mind the odd spelling mistake but you misspelt heard as herd six times.

Yep I debated that, and wasn't sure weather to use an "a" in their or not. But as it's consistent, it only counts as one mistake made several times. The actual spelling was correct, for a herd of cows, so spell checker was no help in this instance. I took a punt, and left out the "a". English.... whoever dreamed it up, should have been shot and the dictionary immediately destroyed, just like Blackadder wanted. And now the world even has regional variations of English spelling, with americans swapping z for s and leaving out important u's

And yes, I used weather and their for your continued entertainment....

[winner69]

Xafalcon …I get my ‘stuff’ re GNE mainly from media reports. There was a good piece by Patrick Smellie in BusinessDesk following a day long preso to analysts et all and a site visit at Huntly

Maybe I was not exactly correct in what Malcolm said but the gist of what I was said seems to was what he was getting at at that preso.

Malcolm might not have actually said the ESG discount was 30% but general consensus is ‘depends on who you talk to the discount is 20% to 30%’. I think it’s fair to assume the updated strategy is aimed at trying to close that and even if not specifically said that is the strong implication isn’t it.

I like one quote by Malcolm from that day that there is “no market segment or political constituency for cold showers by candlelight”.

Whatever keep up your detailed reporting of the things you herd in different events …they are valuable ….and more specific than my generalised stuff eh

[fish]

I’m trying to figure out why GNE is 15% down in 12 months versus other gentailers up 10-15% over same period. A 30% swing compared to industry is rather significant.

My feeling is that the market has failed to appreciate the value of thermal energy shown by our current energy situation and wholesale prices.
Personally I continue to take advantage of this by buying gne

[winner69]

My feeling is that the market has failed to appreciate the value of thermal energy shown by our current energy situation and wholesale prices.
Personally I continue to take advantage of this by buying gne

You going to do well fish. …Forbsr have raised their target price to $3.05

[workingdad]

I’m still deliberating on nibbling at some more and value the various insights since asking the question.

[Joshuatree]

I’m still deliberating on nibbling at some more and value the various insights since asking the question.

Great question WD and responses team,👍
Fwiw Craig's have a neutral rating and favour CEN,MEL and MCY over GNE with MWA last

"Key risks include structural and regulatory change, wholesale an retail competition, and project development risk."