Genesis Energy's earnings upgrade driven by favourable weather - Morningstar

Genesis Energy

16/10/2022 20:56

** Morningstar says NZ-based Genesis Energy Ltd's  GNE.NZ 
upgraded fiscal guidance for FY23 is driven by favourable
weather conditions boosting hyrdoelectric generation, reducing
use of costlier coal
    ** Co on Friday upgraded its FY23 EBITDAF guidance to NZ$500
mln from around NZ$455 mln ($253.12 mln), due to higher inflows
into its hydro dams  urn:newsml:reuters.com:*:nNZSc00a  
    ** Morningstar says GNE finished Q1 with 460 GWh of hydro
storage, 65% above average for that time of year, enabling
strong results for generation division in Q2
    ** Sees FY23 adjusted EBIDTA NZ$502 mln, in line with co's
guidance
    ** It, however, expects GNE's earnings to fall in FY24 as
weather normalises; sees modest EBITDA growth of 1% per year
over next five years
    ** Maintains fair value estimate of NZ$2.60 for co 
    ** One of four analysts rate the stock "buy", two "hold" and
one "sell"; their median PT is A$3.04 – Refinitiv data
    ** Stock down 6.3% this year, as of last close
($1 = NZ$1.7976)
 (Reporting by Poonam Behura in Bengaluru; Editing by Nick
Macfie)
 ((Poonam.Behura@thomsonreuters.com;))