GNE - Genesis Energy

[Dassets]

Snow pack is dead on median for this time of year. Most of the gentailers are reasonably balanced in their books. But there will be winners and losers. Biggest losers will be pure retailers not balanced and flick will be being decimated

[mcdongle]

I would question the comment on lack of snow. Last year's drought was broken in February and the winter snows started in May, which is earlier than normal. All the western ski fields are reporting much more snow than normal, and our indications are that it is the most snow seen for over a decade. The eastern ranges have less snow than normal, but that snow when it melts is just run-off and doesn't end up in the lakes.

Thats some good news then..

[stoploss]

Surprised they can't get enough from BRL ??
https://www.nzherald.co.nz/business/...ectid=12142337

[peat]

I would question the comment on lack of snow. Last year's drought was broken in February and the winter snows started in May, which is earlier than normal. All the western ski fields are reporting much more snow than normal, and our indications are that it is the most snow seen for over a decade. The eastern ranges have less snow than normal, but that snow when it melts is just run-off and doesn't end up in the lakes.

Snow pack is dead on median for this time of year. Most of the gentailers are reasonably balanced in their books. But there will be winners and losers. Biggest losers will be pure retailers not balanced and flick will be being decimated

not sure if its relevant but there was a fair bit of snow on the Nth Is. mountains when I drove past yesterday
Attachment 10073Attachment 10074

[Beagle]

http://www.sharechat.co.nz/article/e...s-on-in-nzhtml

[iceman]

http://www.sharechat.co.nz/article/e...s-on-in-nzhtml

Yes noticed this Beagle. This will happen more and more when our natural gas production reduces. Clean and Green

[Beagle]

Yes noticed this Beagle. This will happen more and more when our natural gas production reduces. Clean and Green

Yeap, classic case of Cindy's Kindy team learning on the job and mucking it up.

[Bobdn]

An interesting read, good historical context.

https://www.energylink.co.nz/news/bl...gh-spot-prices

[Bobdn]

I've been reading a lot about coal this morning and found this interesting article from 2004:

https://www.nzgeo.com/stories/the-coal-rush/

"Genesis Energy CEO Murray Jackson opened an inspection port on one of the boilers at Huntly Power Station, letting out a blast of heat, and I squinted at the inferno inside. A stream of pulverised coal as fine as talcum powder was squirting into a sea of orange flame—the calorific heart of Huntly’s 1000 MW power plant."

Interestingly, back in 2004 Genesis was thinking about adding more coal-fired turbines for energy security. Boy, haven't times changed. Still here we are, 14 years later, and the only thing keeping on the lights on this rainy Saturday is King Coal.

[Beagle]

GNE have been making submissions to Govt in regard to the exploration ban. They're suggesting we're heading for a crisis where customers will have to start paying to import LNG at three times the price to replace gas currently produced by Kupe. They go on to say customers will face the prospect of dramatically increased costs long before the Kupe field is dry. (Guess what, they are not kidding !).

Many will know GNE took over Nova energy's LPG business last year with a view to capturing the full vertical chain of value downstream to consumer level. One of the conditions of the takeover was no price changes for LPG customers in the first year. A 45kg bottle of LPG delivered cost me $91.66 under Nova's ownership. Got a letter from Genesis energy this week saying my LPG pricing is "changing" Their new price is $120.00 less 10% discount for prompt payment = $108.00 a whopping 17.8% price increase when inflation is just 2%.

Customers are already being poorly treated by this Government's short sighted approach to transport (just keep whacking them with extra taxes) and exploration and are already being asked to pay highly increased gas prices because the Government want to have the "appearance" of being clean and green. Its annoying to say the least. All that's going to happen as a country is we will burn more fossil fuels to ship the gas in in the form of LNG and families will suffer as we eventually pay grossly higher prices than that which currently prevail.

Two things occur to me. 1. I am going to consider increasing my stake in GNE as its obvious they are going to milk Kupe for all its worth for as long as it lasts and its a good defensive share in a downturn with a great yield.
2. I will try and find a better LPG deal but I suspect similar price increases at a wholesale level will be passed on to the other gas suppliers.