Genesis Energy Posts Record $307m EBITDAF, Launches $400m Equity Raise

Strong Earnings Reflect Portfolio Flexibility

Genesis Energy Limited has delivered a record first-half normalised EBITDAF of NZ$307 million for the six months ended 31 December 2025, marking a 38% increase compared to the prior corresponding period. This robust performance was driven by favourable hydro inflows, particularly in the South Island, and the company’s market-leading fuel and generation flexibility under its Gen35 strategy.

The diversified portfolio enabled Genesis to reduce reliance on thermal coal generation, which fell significantly, while optimising renewable generation and gas supply. This flexibility not only bolstered earnings resilience during variable market conditions but also contributed to a reduction in carbon emissions and generation costs.

Accelerating Growth with a $400 Million Equity Raise

To capitalise on its strong momentum, Genesis announced a NZ$400 million equity raise aimed at accelerating development across renewable generation and dispatchable firming capacity. The raise consists of an underwritten NZ$100 million placement priced at NZ$2.15 per share and a 1-for-7.9 pro rata renounceable rights offer to raise NZ$300 million at NZ$2.05 per share.

The proceeds will initially be used to reduce net debt, providing financial flexibility to fast-track projects aligned with the Gen35 strategy. Notably, the Crown has committed to participate in the offer to maintain a 51% shareholding, reflecting government support for Genesis’ role in New Zealand’s energy security and transition to renewables.

Key Project Developments and Strategic Partnerships

Genesis has made significant strides in its renewable pipeline, which now totals approximately 2,500 MW of forecast generation capacity. The company reached a final investment decision (FID) for the 136 MW Edgecumbe solar farm, with construction slated to begin in Q4 FY26. The 271 MW Rangiriri solar farm was acquired, expected to generate around 437 GWh annually; enough to power over 54,000 homes.

Progress continues on the Huntly Battery Energy Storage System (BESS) Stage 1, a 100 MW/200 MWh project on track and within budget, with Stage 2 feasibility advancing. Additionally, Genesis secured a 15-year power purchase agreement (PPA) for 70% of the Mt Cass wind farm’s output, expected to deliver 210 GWh annually from FY29.

The company also entered an exclusive partnership with Yinson Renewables, granting access to a ~1 GW wind pipeline, further enhancing its renewable growth prospects.

Financial Strength and Dividend Policy

Genesis maintained its BBB+ investment grade credit rating with a stable outlook, supported by disciplined capital management and a strong balance sheet. Operating free cash flow rose to NZ$183 million, funding growth capital, maintenance, and dividends.

The board declared an interim dividend of 7.30 cents per share, slightly up from 7.13 cents in the prior period, reaffirming the company’s commitment to its fixed dividend policy through FY28. The dividend reinvestment plan (DRP) strike price will be set at the lower of the rights offer price or the usual DRP calculation, ensuring shareholder value alignment.

Outlook and Strategic Confidence

Genesis reaffirmed its FY26 normalised EBITDAF guidance of NZ$490 million to NZ$520 million and raised its FY28 target to the upper NZ$500 million range. The company also published a FY32 outlook of NZ$650 million to NZ$750 million, reflecting confidence in its growth trajectory and the evolving energy market.

Chief Executive Malcolm Johns highlighted the company’s ability to defend earnings during dry periods and optimise returns in favourable conditions, emphasizing the strategic importance of flexibility and renewables in New Zealand’s energy transition.