GNE - Genesis Energy

[iceman]

Maybe the market liked their announcement that they are in advanced discussions to build a huge 300 megawatt solar farm in northern Waikato ! https://www.nzherald.co.nz/business/...ectid=12310700

[King1212]

Maybe the market liked their announcement that they are in advanced discussions to build a huge 300 megawatt solar farm in northern Waikato ! https://www.nzherald.co.nz/business/...ectid=12310700

That is a great investment! Hopefully next Monday will see people coming to power companies n property stocks as corona virus fear arise again

[Beagle]

The market's certainly not fazed by the result. SP up 4.5c today, going against the trend of other gentailers.

Outlook for the full year was sound, (but note the caveat about normal hydrology).

[Davexl]

Outlook for the full year was sound, (but note the caveat about normal hydrology).

One of the key aspects i like about Genesis, is their ability to generate base-load power from gas or coal when hydrology is poor, or wind and sun hours low.
And they are already about to implement their first big windfarm, Waipipi, plus a second one on the way. (Hedging the carbon cost).
We will need guaranteed base-load power generation for decades until grid scale batteries are more widely available and better grid stability controls are in place.
eg what AGL are doing now in Aust https://www.smh.com.au/business/comp...29-p53vs7.html

[King1212]

Yup, enjoy the dividends, because it doesn't look like they will be going up much from now on...

I'm trying to figure out how this is worth $3.3b... before it was all due to the FCF, now even this is showing signs of flattening off so not sure how they will keep increasing dividends (ideally, above the rate of inflation)

Electricity is always going to be expensive nowadays. U see most of us will struggle without power. Whether recession or not or virus epidemic.... people still need power. Not to mention the dependant of electricity with our normal living activities....

So power bill will still need to be paid....

[value_investor]

Electricity is always going to be expensive nowadays. U see most of us will struggle without power. Whether recession or not or virus epidemic.... people still need power. Not to mention the dependant of electricity with our normal living activities....

So power bill will still need to be paid....

A good defensive stock to have for sure for a all weather portfolio. Although, I don't see how it will return any meaningful compound growth at the current valuation. I'm surprised this went up after a poor result, not sure how a stock maintains a price after seeing its FCF go down 17%, but the market is a kettle on the boil right now..

[King1212]

Happy with the yield..compare with the banks and other stocks which exposed to china slow down due to epidemic.

Reliable dividend stocks....with the current byield..only unlisted property stock which return more than 6%

[turnip]

Will Genesis own the proposed 300MW Waikato solar farm, or will it be like the Waipipi jwind farm where another company (Tilt Renewables in that case) owns it and Genesis buys the output? It doesn't seem to be clear in the announcement.

[King1212]

I think ....100% owned by Genesis. Happy to be corrected if I am wrong...as the announcement did not say any other parties...
That why the market likes it

[turnip]

Going by the cost of Tilt Renewables' solar farm projects in Australia, a 300MW solar farm would cost something like $600 million. Would Genesis need to raise more capital to fund that?