Genesis Energy Reports Record H1 FY26 Earnings and Announces NZ$400m Capital Raise

About Genesis Energy Ltd

Genesis Energy (ASX: GNE) is a diversified New Zealand energy company, supplying electricity, reticulated natural gas and LPG to more than 520,000 customers nationwide. The company operates a portfolio of renewable and thermal generation assets located across the country and holds a 46 per cent interest in the Kupe Oil and Gas Field offshore Taranaki.

For the six months ended 31 December 2025, Genesis delivered record normalised EBITDAF of NZ$307 million, up 38 per cent compared with the prior corresponding period. Reported EBITDAF rose to NZ$303 million, while net profit after tax increased to NZ$95 million. The interim dividend was lifted to 7.30 cents per share, reflecting continued confidence in earnings resilience.

Operational Performance and Portfolio Flexibility

The result was enabled by improved hydro inflows during spring and Genesis’ market-leading flexibility across its generation fleet. FY26 commenced with record low inflows and snowpack; however, South Island inflows, particularly at Tekapo, improved materially later in the half, reducing the need for thermal baseload generation.

Coal generation fell significantly to 164 GWh from 710 GWh in the prior corresponding period, as thermal assets shifted from baseload supply toward flexible firming operations. This response reduced generation costs and carbon emissions, underscoring the structural advantage of a diversified portfolio capable of flexing between fuels depending on market conditions.

Genesis’ ability to defend earnings during dry periods while maximising returns during favourable hydro and wind conditions remains central to its Gen35 strategy.

Retail Strategy and Margin Quality

Margin quality continues to underpin financial performance. Electricity netback increased 17 per cent year-on-year to NZ$172 per MWh, driven by disciplined pricing, improved customer mix and continued operating simplification. Total netback uplift across electricity and gas increased by NZ$113 million, demonstrating the commercial impact of prioritising value over volume.

The strategy has focused on consolidating retail brands, enhancing product offerings such as EV plans and demand flexibility programmes, and improving lifecycle customer value. Genesis has also advanced its digital transformation, migrating approximately 50,000 customers to a new customer relationship management system during the half, with further releases on track.

Digital investment remains within the previously disclosed NZ$145 million envelope and is expected to support structural cost-to-serve reductions and improved portfolio optimisation from FY28 onwards.

Renewables Development and Growth Pipeline

Genesis’ renewable and storage pipeline now totals approximately 2,500 MW of development options. A final investment decision has been delivered for the 136 MWp Edgecumbe solar farm in the Bay of Plenty, with construction scheduled to commence in Q4 FY26.

The company has also acquired the 271 MWp Rangiriri solar farm near Waikato, which is expected to generate around 437 GWh of electricity annually once operational. Additional projects, including Leeston solar and Castle Hill wind development options, continue to advance through design and feasibility stages.

A 15-year power purchase agreement has been secured for 70 per cent of the Mt Cass wind farm output in Canterbury, providing further long-term renewable supply once operational.

Firming Capacity and Energy Security

Recognising the importance of grid stability amid rising renewable penetration, Genesis has strengthened its firming capability at Huntly Power Station. The Commerce Commission authorised 10-year Huntly Firming Options covering 150 MW with Contact, Mercury and Meridian, effective 1 January 2026.

The arrangements support continued operation of the Rankine units and establish a strategic fuel reserve of up to 600,000 tonnes, enhancing energy security for dry winter conditions. Huntly BESS Stage 1, a 100 MW / 200 MWh battery project, remains on track and within budget, with Stage 2 feasibility progressing. These investments position Genesis to manage intermittency while facilitating greater renewable integration.

Capital Management and Equity Raise

Genesis has launched a NZ$400 million equity raise comprising a NZ$100 million institutional placement at NZ$2.15 per share and a NZ$300 million pro rata renounceable rights offer at NZ$2.05 per share.

The Crown has committed approximately NZ$198 million to maintain a 51.00 per cent shareholding following completion. The remaining offer is underwritten by Jarden Partners Limited.

Proceeds will initially reduce net debt and accelerate investment across a growth pipeline exceeding NZ$2 billion through to FY32, spanning renewables, battery storage and Huntly repurposing.

Guidance and Outlook

Following the strong first-half performance, Genesis reaffirmed FY26 normalised EBITDAF guidance of NZ$490 million to NZ$520 million. The FY28 target has increased to the upper NZ$500 million range, and a new FY32 outlook of NZ$650 million to NZ$750 million has been introduced.

These outlook expectations remain subject to hydrological conditions, gas availability, plant reliability and stable market settings. The Board reiterated its fixed dividend policy through Horizon 2 of Gen35 while balancing growth investment and credit metrics.