FY18 Q4 Performance Report...FY18 Q4 PERFORMANCE REPORT 2 Q4 FY18 Performance Summary - Customer...

18 July 2018

FY18 Q4

Performance Report

G E N E S I S E N E R G Y L I M I T E D

FY18 2Q4 PERFORMANCE REPORT

Q4 FY18 Performance Summary

- Customer churn fell nearly 4 percentage points on the prior comparable period (pcp) to18% and customers with more than one product were up by 5,181. Netback fell 5% onpcp to $82/MWh due to increased investment in marketing and business sales teams,and increased B2B volumes.

- Total electricity sales volume was up 9% to 1,642 GWh, B2B increased 23%, offset by a1% fall in residential sales volumes.

- Total gas sales volume was up 12% to 2.1 PJ, B2B up 16%, and total LPG sales volume up119% on pcp.

- Tekapo’s 80 MW generator returned to service on 2 June with Lake Tekapo storage at144% of average.

- Average generation price received was $84/MWh. LWAP/GWAP ratio was down 5percentage points to 98%, a positive result.

- Total generation volume was down 16% on pcp to 1,603 GWh. Carbon emissions weredown 14% on pcp to 454 ktCO2.

- Field production for the quarter was 83% of maximum capacity, down 13 percentagepoints on pcp, partly due to a 4.5 day plant outage and lower demand from generation.Gas production was down on pcp from 3.0 PJ to 2.7 PJ.

- LPG sales were up 8% on pcp to 11.8 kt with LPG yield at 4.29 t/TJ of gas produced, up14% on pcp.

- 196 kbbl of oil sales were recorded, down 21% on pcp. Average spot price for oil was up50% on pcp, to USD74/bbl.

Genesis’ investment in brand and Energy Management products and service levels are having a measurable impact on brand perception, resulting in below market churn rates. James Magill, Executive General Manager Product Marketing

Customer

Wholesale

Kupe

Wholesale

WholesaleKupe

-3,000

-2,000

-1,000

-

1,000

2,000

3,000

Jul-

17

Au

g-1

7

Sep

-17

Oct

-17

No

v-1

7

De

c-1

7

Jan

-18

Feb

-18

Mar

-18

Ap

r-1

8

May

-18

Jun

-18

Net

Cu

sto

mer

& IC

P M

ove

men

t Net Customer Movement Net ICP Movement

FY18 3

Customer Segment Performance

Highs Lows

22.8%

2.1 PJTotal gas sales

volumes12.3%

$82/MWhNetback down due to

B2B volume increase & investment in growth

5.1%737 GWhB2B electricity

sales

Q4 PERFORMANCE REPORT

Customer > 1 Product

5,181 up on Q4 FY17

1,642 GWhTotal Electricity

retail sales volumes9.0%

1.2%

851 GWhResidential electricity

sales volume

1.2%

0.7 PJResidential gas sales volume

10%Genesis Brand Net

Promoter score climbs 9 ppt

NET CUSTOMER & ICP MOVEMENT (ALL FUELS)

Customer Churn1

Down from 21.1% Q4 FY17 to 17.5% 3.6 ppt

5.0%

1. Based on losing and gaining accounts under a Single Customer View

FY18 4

Wholesale Segment Performance

$84/MWhAverage price received

for generation 6.1%

LWAP / GWAPRatio down due to

portfolio optimisation5 ppt

Tekapo80 MW returned to

service on 2 June 2018

86.5%Equipment Availability

Factor (EAF) down partly due to Tekapo

outage

7.1%

283 ktCO2Generation

emissions down


Highs Lows

310 kilotonneHuntly coal stockpile

inventory levels optimised11.0% 0

1,000

2,000

3,000

4,000

5,000

6,000

$-

$50

$100

$150

$200

$250

$300

$350

1-A

pr

6-A

pr

11

-Ap

r

16

-Ap

r

21

-Ap

r

26

-Ap

r

1-M

ay

6-M

ay

11

-May

16

-May

21

-May

26

-May

31

-May

5-J

un

10

-Ju

n

15

-Ju

n

20

-Ju

n

25

-Ju

n

Lake Storage(GWh)

Wholesale Price($/MWh)

Benmore (BEN2201) Otahuhu (OTA2201)

Storage Long Run Average (RHS) FY2018 Storage

Source: COMIT/Genesis Energy

DAILY AVERAGE WHOLESALE PRICES & NATIONAL HYDRO

13.7%

727 GWhRenewable generation

down partly due to Tekapo outage

12.7%

FY18 5

Kupe Segment Performance

11.8 ktLPG sales up in line

with gas and improved yield 7.8%

13.4%

USD74/bblAverage Brent Crude

spot oil price

196 kbblKupe year-end oil

sales

External Sales

GNE 46% Kupe share

120 kbbl Oil11.8 kt LPG

2.7 PJ Gas

Fuels Portfolio

Electricity Generation

Wholesale Market

Retail Customers

1,642 GWh Electricity

2.0 PJ Gas

2.1 PJ Gas

4.9 kt LPG

10.0 kt LPG

1,603 GWh Electricity

10.0 PJ Gas 1.6 PJ Coal

0 GJ Diesel

722 GWh Hydro

6 GWh Wind

876 GWh Thermal

196 kbbl Oil

14.9 kt LPG

0.1 kt LPG

External Purchases

7.3 PJ Gas

2.4 PJ Coal

3.2 kt LPG

0.1 PJ Coal

49.6%

Q4 INTEGRATED PHYSICAL ENERGY FLOWS1


Highs Lows

4.29 t/TJLPG yield 14.3%

1. LPG difference represents movement in storage

2.7 PJGas production

down due to plant outage and lower

generation demand

4.5 dayoutage but had limited impact on production

FY18 6

Glossary


CUSTOMER

Brand Net Promoter Score Based on survey question "How likely would you be to recommend Genesis Energy/Energy Online to your friends or family?"

Electricity Market Share Market share based on Electricity Authority data for the end of quarter

Gas Market Share Market share based on Gas Industry Company data for the end of quarter

Customers Electricity and gas customers are defined by single customer view, regardless of number of connections (ICP's)

Single Customer View Represents unique customers which may have multiple ICP's

ICP Installation Connection Point, a connection point that is both occupied and has not been disconnected (Active-Occupied)

Customer Churn Based on losing and gaining accounts under a Single Customer View

MVP Minimal Viable Product

Resi, SME, C&I Residential, small and medium enterprises and commercial & industrial customers

Volume Weighted Average Electricity Selling Price - $/MWh Average selling price for customers including lines/transmission and distribution and after prompt payment discount

Volume Weighted Average Gas Selling Price - $/MWh Average selling price for customers including lines/transmission and distribution and after prompt payment discount

Average Retail Electricity Purchase Price - LWAP ($/MWh) Excludes settlements from electricity derivatives.

LPG Customer Connections Defined as number of customers

Bottled LPG Sales (tonnes) Represents 45kg LPG bottle sales

Other Bulk and SME LPG Sales (tonnes) Represents bulk, 3rd party distributors and SME sales

Wholesale LPG Sales (tonnes) Represents wholesale, export sales and transfers to Huntly power station

Electricity Sales - Wholesale (GWh) Includes contracts for difference and options (excluding futures)

Electricity Purchases - Wholesale (GWh) Includes contracts for difference and options (excluding futures)

Retail Netback ($/MWh) Customer Segment EBITDAF plus electricity and gas purchase cost divided by total electricity and gas sales volumes

GENERATION

Coal (GWh) Coal generation is calculated by applying coal burn to monthly average heat rates

Average Price Received for Generation - GWAP ($/MWh) Excludes settlements from electricity derivatives.

Coal Used In Internal Generation (PJ) Results have been revised to reflect changes in coal kilo tonnes to PJ conversion rate and volume methodology

Rankines Fuelled by Coal (%) The proportion of coal used in the Rankine units

Equipment Availability Factor (EAF) The percentage of time a power station is available to generate electricity

Forced Outage Factor (FOF) The percentage of time a power station is unavailable to generate electricity due to unplanned failure or defect.

WHOLESALE

Weighted Average Fuel Cost ($/MWh) Total cost of fuel burnt plus emissions on fuel burnt divided by total generation (thermal, hydro and wind)

CORPORATE

Total Recordable Injury Frequency Rate Rolling 12 month TRIFR per 200,000 hours worked for employees and contractors

Headcount Based on full time equivalents, excluding contractors

KUPE

Oil Hedge Levels (%) % hedged for remainder of FY as % of forecast sales

FY18 7

Customer Metrics

1. June 2017 customer numbers restated post LPG integration.

Q4 PERFORMANCE REPORT 2. Historical LPG figures restated post LPG integration.

CUSTOMER SEGMENT Q4 FY18 Q4 FY17 % Change Var. YTD FY18 YTD FY17 % Change Var.

CUSTOMER

Brand Net Promoter Score - Genesis Energy (%) 10.0% 1.0% 900.0% 9.0%

Retail Netback ($/MWh) $81.92 $86.29 (5.1%) ($4.38) $80.33 $83.81 (4.2%) ($3.48)

CUSTOMER NUMBERS1

Electricity Only Customers 341,545 357,900 (4.6%) (16,355)

Gas Only Customers 18,444 19,134 (3.6%) (690)

LPG Only Customers 35,639 33,435 6.6% 2,204

Customers > 1 Product 109,767 104,586 5.0% 5,181

Total Customers 505,395 515,055 (1.9%) (9,660)

Electricity ICPs Active-Occupied 503,234 513,725 (2.0%) (10,491)

Gas ICPs Active-Occupied 106,082 106,909 (0.8%) (827)

Total ICPs 609,316 620,634 (1.8%) (11,318)

VOLUMES AND PRICE

Volume Weighted Average Electricity Selling Price - Resi ($/MWh) $249.93 $252.79 (1.1%) ($2.86) $252.26 $251.44 0.3% $0.81

Volume Weighted Average Electricity Selling Price - SME ($/MWh) $217.17 $218.64 (0.7%) ($1.47) $216.66 $215.38 0.6% $1.28

Volume Weighted Average Electricity Selling Price - C&I ($/MWh) $127.64 $129.89 (1.7%) ($2.24) $121.46 $120.04 1.2% $1.42

Residential Electricity Sales (GWh) 851 862 (1.2%) (11) 3,088 3,227 (4.3%) (139)

SME Electricity Sales (GWh) 265 261 1.5% 4 1,081 1,096 (1.4%) (15)

C&I Electricity Sales (GWh) 525 383 37.3% 143 1,811 1,330 36.2% 481

Electricity Sales - Retail (GWh) 1,642 1,505 9.0% 136 5,980 5,653 5.8% 327

Electricity Sales - Wholesale (GWh) 679 587 15.7% 92 2389 1,998 19.6% 391

Electricity Purchases - Retail (GWh) 1,745 1,587 10.0% 158 6,295 5,964 5.6% 331

Electricity Purchases - Wholesale (GWh) 591 284 108.4% 308 1873 1,313 42.7% 560

Average Retail Electricity Purchase Price - LWAP ($/MWh) $82.42 $81.28 1.4% $1.14 $92.12 $60.53 52.2% $31.59

LWAP/GWAP Ratio (%) 98% 103% (4.4%) (4.6%) 101% 100% 0.7% 0.7%

Volume Weighted Average Gas Selling Price ($/GJ) $25.40 $26.15 (2.9%) ($0.75) $27.12 $27.14 (0.1%) ($0.02)

Residential Gas Sales (PJ) 0.7 0.7 (1.2%) (0.0) 2.7 2.8 (5.2%) (0.1)

SME Gas Sales (PJ) 0.4 0.4 9.7% 0.0 1.4 1.4 3.6% 0.1

C&I Gas Sales (PJ) 1.0 0.8 26.2% 0.2 3.4 3.1 7.0% 0.2

Retail Gas Sales (PJ) 2.1 1.9 12.3% 0.2 7.5 7.4 1.7% 0.1 LPG2

LPG Customer Connections (#) 64,791 58,799 10.2% 5,992

Bottled LPG Sales (tonnes) 4,151 2,463 68.6% 1,688 14,012 5,981 134.3% 8,031

Other Bulk & SME LPG sales (tonnes) 5,814 2,091 178.0% 3,723 20,993 2,306 810.5% 18,687

Total LPG Sales Volumes (tonnes) 9,965 4,554 118.8% 5,411 35,005 8,287 322.4% 26,718

Wholesale LPG Sales (tonnes) 4,996 7,658 (34.8%) (2,663) 29,668 24,792 19.7% 4,876

FY18 8

Wholesale Metrics


WHOLESALE SEGMENT Q4 FY18 Q4 FY17 % Change Var. YTD FY18 YTD FY17 % Change Var.

GENERATION

Gas (GWh) 740 927 (20.1%) (187) 3,392 3,082 10.0% 309

Coal (GWh) 135 138 (2.2%) (3) 657 186 254.2% 472

Total Thermal (GWh) 876 1,065 (17.8%) (190) 4,049 3,268 23.9% 781

Hydro (GWh) 722 831 (13.2%) (109) 3,036 3,133 (3.1%) (98)

Wind (GWh) 6 4 37.6% 2 21 21 0.1% 0

Total Renewable (GWh) 727 835 (12.9%) (108) 3,056 3,154 (3.1%) (98)

Total Generation (GWh) 1,603 1,900 (15.7%) (297) 7,105 6,422 10.6% 683

Average Price Received for Generation - GWAP ($/MWh) $83.69 $78.88 6.1% $4.81 $91.59 $60.63 51.1% $30.96

Rankine Output (GWh) 183 271 (32.6%) (89) 1,042 453 130.1% 589

Rankines Fueled by Coal (%) 74% 51% 45.2% 23% 63% 41% 54% 22% Generation Emissions (ktCO2) 454 526 (13.7%) (72) 2,137 1,474 45.0% 663

Generation Carbon Intensity (tCO2/GWh) 283 277 2.3% 6 301 230 31.1% 71

Forced Outage Factor (FOF) 10.1% 0.9% 971.0% 9.2% 4.6% 0.9% 419.8% 3.7%

Equipment Availability Factor (EAF) 86.5% 93.2% (7.1%) (6.7%) 91.1% 92.5% (1.5%) (1.4%)

WHOLESALE

Gas Purchases (PJ) 10.0 12.2 (18.5%) (2.3) 45.9 45.6 0.8% 0.3

Coal Purchases (PJ) 2.4 1.4 72.8% 1.0 6.7 1.4 365.0% 5.2

Wholesale Gas Sales (PJ) 2.0 2.9 (31.1%) (0.9) 11.8 14.2 (16.8%) (2.4)

Wholesale Coal Sales (PJ) 0.1 0.1 (21.1%) (0.0) 0.4 0.7 (48.0%) (0.3)

Gas Used In Internal Generation (PJ) 5.8 7.4 (21.7%) (1.6) 26.7 23.9 11.5% 2.8

Coal Used In Internal Generation (PJ) 1.6 1.5 4.8% 0.1 7.6 2.3 237.4% 5.4

Weighted Average Fuel Cost ($/MWh) $38.13 $36.43 4.7% $1.71 $37.91 $32.54 16.5% $5.37

Coal Stockpile - closing balance (kilotonnes) 310.7 349.2 (11.0%) (38.6)

FY18 9

Kupe and Other Metrics

1. TRIFR now being reported to include contractors. Prior period has been restated on same basis


KUPE SEGMENT Q4 FY18 Q4 FY17 % Change Var. YTD FY18 YTD FY17 % Change Var.

KUPE

Gas Production (PJ) 2.7 3.1 (13.4%) (0.4) 11.8 9.3 25.9% 2.4

Oil Production (kbbl) 119.5 152.3 (21.5%) (32.8) 533 475.9 12.0% 56.9

Oil Sales (kbbl) 196.4 247.6 (20.7%) (51.2) 533 507 5.2% 26.5

Average Brent Crude Oil (USD/bbl) $74.35 $49.69 49.6% $24.66 $63.65 $49.70 28.1% $13.95

LPG Sales (kt) 11.8 10.9 7.8% 0.9 46.1 32.1 43.6% 14.0

LPG Production (kt) 11.5 11.6 (1.0%) (0.1) 45.9 32.8 40.1% 13.1

OTHER Q4 FY18 Q4 FY17 % Change Var. YTD FY18 YTD FY17 % Change Var.

CORPORATE1

Headcount (FTE) 1,041 754 38.1% 287

Total Recordable Injury Frequency Rate 1.25 0.78 60.3% 0.47

FY18 10

Appendix: Customer Segment


0

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10,000

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0

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Q1

FY1

4

Q2

Q3

Q4

Q1

FY1

5

Q2

Q3

Q4

Q1

FY1

6

Q2

Q3

Q4

Q1

FY1

7

Q2

Q3

Q4

Q1

FY1

8

Q2

Q3

Q4

Ton

nes

Ton

nes

LPG SALES VOLUMES (tonnes)

Quarterly Retail LPG Sales Volumes

Quarterly Bulk/SME LPG Sales Volume

Rolling 12month sales volume (RHS)

0

1000

2000

3000

4000

5000

6000

7000

0

200

400

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1200

Q1

FY1

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Q2

Q3

Q4

Q1

FY1

5

Q2

Q3

Q4

Q1

FY1

6

Q2

Q3

Q4

Q1

FY1

7

Q2

Q3

Q4

Q1

FY1

8

Q2

Q3

Q4

GW

h

GW

h

ELECTRICITY SALES VOLUMES (GWh)

Quarterly C&I Sales Volumes Quarterly Resi Sales Volumes

Quarterly SME Sales Volumes Rolling 12month sales volume (RHS)

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

Q1

FY1

4

Q2

Q3

Q4

Q1

FY1

5

Q2

Q3

Q4

Q1

FY1

6

Q2

Q3

Q4

Q1

FY1

7

Q2

Q3

Q4

Q1

FY1

8

Q2

Q3

Q4

PJ

PJ

RETAIL GAS SALES VOLUMES (PJ)

Quarterly C&I Sales Volumes Quarterly Resi Sales VolumesQuarterly SME Sales Volumes Rolling 12month sales volume (RHS)

FY18 11

Appendix: Wholesale Segment


0100200300400500600700800900

1000

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

GWh

TEKAPO STORAGE vs LONG RUN AVERAGE - Q4 FY2018

Tekapo Storage

Source: COMIT

0

20

40

60

80

100

120


GWh

WAIKAREMOANA STORAGE vs LONG RUN AVERAGE - Q4 FY2018

Waikaremoana Storage

Source: COMIT

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

GWh

NEW ZEALAND DAILY STORAGE

91 year Average 12month Rolling

Source: COMIT

FY18 12

Appendix: Wholesale SegmentPLANT PERFORMANCE


0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Jan

-15

Mar

-15

May

-15

Jul-

15

Sep

-15

No

v-1

5

Jan

-16

Mar

-16

May

-16

Jul-

16

Sep

-16

No

v-1

6

Jan

-17

Mar

-17

May

-17

Jul-

17

Sep

-17

No

v-1

7

Jan

-18

Mar

-18

May

-18

Forc

ed O

uta

ge F

acto

r (F

OF)

%

Equ

ipm

ent

Ava

ilab

ility

Fac

tor

(EA

F) %

Monthly EAF Monthly FOF

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Q4 2018 Q4 2017 Q4 YTD 2018 Q4 YTD 2017

GW

h

Hau Nui Wind Farm

Tekapo A and B power stations

Waikaremoana Power Scheme

Tongariro Power Scheme

Huntly Unit 6

Huntly Unit 5

Huntly Units 1 to 4 Gas

Huntly Units 1 to 4 Coal

GENERATION BY POWER STATION

TAKE-OR-PAY FORWARD GAS PURCHASES1 – Q4 DISCLOSURE

0

5

10

15

20

25

30

35

40

FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26

PJ

$7.50 -$8.50

1. Represents gas contracts under which Genesis is required to take the product or pay a penalty. Includes Kupe and PPI adjustments

$8.00 -$9.00

$8.00 -$9.00

$8.00 -$9.00 $8.50 -

$9.50 $8.50 -$9.50

$8.50 -$9.50

FY18 13

Appendix: Kupe Segment

OIL PRICE and FOREX RISK MANAGEMENTBRENT CRUDE OIL SPOT PRICE (USD/bbl)


KUPE GAS VOLUMES (PJ) KUPE OIL PRODCUTION VOLUMES (kbbl)

$30

$40

$50

$60

$70

$80


12 mths to Jun17 12 mths to Jun18

380.0

420.0

460.0

500.0

540.0

580.0

-

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

180.0

Q1

FY1

3

Q2

FY1

3

Q3

FY1

3

Q4

FY1

3

Q1

FY1

4

Q2

FY1

4

Q3

FY1

4

Q4

FY1

4

Q1

FY1

5

Q2

FY1

5

Q3

FY1

5

Q4

FY1

5

Q1

FY1

6

Q2

FY1

6

Q3

FY1

6

Q4

FY1

6

Q1

FY1

7

Q2

FY1

7

Q3

FY1

7

Q4

FY1

7

Q1

FY1

8

Q2

FY1

8

Q3

FY1

8

Q4

FY1

8

‘000 barrels‘000 barrels

Quarterly Production Volume Rolling 12 Months Sales Volume (RHS)

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

-

0.5

1.0

1.5

2.0

2.5

3.0

3.5

Q1

FY1

3

Q2

FY1

3

Q3

FY1

3

Q4

FY1

3

Q1

FY1

4

Q2

FY1

4

Q3

FY1

4

Q4

FY1

4

Q1

FY1

5

Q2

FY1

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Q3

FY1

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Q4

FY1

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Q1

FY1

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Q2

FY1

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Q3

FY1

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FY1

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FY1

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Q2

FY1

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Q3

FY1

7

Q4

FY1

7

Q1

FY1

8

Q2

FY1

8

Q3

FY1

8

Q4

FY1

8

PJPJQuarterly Sales Volume Rolling 12 Months Sales Volume (RHS)

FORWARD RISK MANAGEMENT

Oil Price Hedges (USD) % Hedged Average Oil Price

1-12 months 70% $54.70

13-24 months 61% $56.50

25-36 months 41% $61.10

USD/NZD Hedges Rate

1-12 months 63% 0.684

13-24 months 54% 0.700

25-36 months 15% 0.691

FY18 Q4 Performance Report...FY18 Q4 PERFORMANCE REPORT 2 Q4 FY18 Performance Summary - Customer...

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