Genesis Energy, New Zealand’s largest gas and electricity retailer, is poised to resume paying dividends to the government in the coming months.
The Auckland-based state-owned enterprise, which has 672,000 customers, ceased paying dividends in 2011 to pay down debt, after it was ordered to buy the Tekapo A and B hydro stations by the government.
In a statement today Genesis chief executive Albert Brantley said the company’s financial performance had been ahead of target in the three months to September 30, and the company was ‘‘well positioned’’ to pay an interim dividend at the start of next year.
Total generation of 2226 gigawatt hours was 1.5 per cent ahead of the same time a year ago, with thermal generation from the coal and gas fired Huntly station up 3.3 per cent on a year ago.
Despite fierce competition, Genesis saw its total customer accounts climb to 672,620, an increase of about 4000 in three months.
“During the Quarter we continued to optimise the performance of our generation assets, maintained focus on delivering outstanding customer service, and continued our drive to reduce earnings volatility in pursuit of delivering stable earnings and stable yield,” Mr Brantley said in a statement.
Yesterday Meridian, which is New Zealand’s largest electricity generator, warned that low wholesale prices were likely to hit its profits in the six months to December 31.
- © Fairfax NZ News