Genesis Energy FY18 Q1 Performance Report

GENESIS ENERGY FY18 Q1 PERFORMANCE REPORT - strong start for the Wholesale and Kupe segments supported by favourable wholesale conditions CUSTOMER It was a busy first quarter for the Customer segment as several milestones were achieved in the integration of the Nova Energy retail LPG business. This included welcoming 70 new LPG team members, over 70% of customers being migrated, all depots rebranded and call centre activities being handled by the new LPG customer experience team. Electricity demand was up for the quarter as continued business growth offset residential declines with price increases across both market segments. Gas prices also increased up 2.1% although demand was down slightly. Overall customers were down 1,101 for the quarter with small declines in electricity and gas customers offset by continued growth in LPG. WHOLESALE Genesis was able to leverage its diverse and flexible generation portfolio to meet variable market conditions in the first quarter of FY18. Total generation was up 23.2% across both thermal and renewable sources from a combination of higher thermal at the beginning of the quarter when lake levels remained low, through to higher renewable generation more recently as storage levels returned to above average conditions. The weighted average wholesale price was up 66.2% in the prior quarter whilst efforts around plant availability translated to more favourable EAF and FOF metrics. KUPE Strong production levels were delivered in the first quarter of FY18 from gas production of 3.1PJ, with the field operating at 95.4% of maximum plant capacity. LPG yield was higher as the amine system issues in the prior quarter were resolved and compressor repairs were completed in August. Oil sales were down despite the higher ownership percentage as a shipment was deferred to accommodate a larger cargo thereby reducing selling costs. "The competitive advantage of our diverse and flexible generation and fuels portfolio was again demonstrated in the first quarter in variable market conditions" - Tracey Hickman, EGM Generation & Wholesale ENDS For media enquiries, please contact: Emma-Kate Greer Group Manager Corporate Relations M: 027 655 4499 For investor relations enquiries, please contact: Wendy Jenkins Group Manager Corporate Finance and Investor Relations P: 09 951 9355 M: 027 471 2377 About Genesis Energy Genesis Energy (NZX: GNE) is a diversified New Zealand energy company. It sells electricity, reticulated natural gas and LPG through its retail brands of Genesis Energy and Energy Online. It is New Zealand's largest energy retailer with around 510,000 customers. The Company generates electricity from a diverse portfolio of thermal and renewable generation assets located in different parts of the country. Genesis Energy also has a 46% interest in the Kupe Joint Venture, which owns the Kupe Oil and Gas Field offshore of Taranaki, New Zealand. Genesis Energy had revenue of $NZ2 billion during the 12 months ended 30 June 2017. More information can be found at www.genesisenergy.co.nz End CA:00308840 For:GNE Type:MKTUPDTE Time:2017-10-18 08:33:29