Genesis Energy (ASX: GNE), a diversified New Zealand energy company selling electricity, reticulated natural gas, and LPG, and one of New Zealand’s largest energy retailers, has reported its performance for the fourth quarter ended 30 June 2026. The company delivered a solid result with netback rising due to a focus on margin quality and effective leveraging of its flexible generation portfolio. However, financial outcomes for the quarter landed at the lower end of expectations, primarily impacted by warmer-than-forecast temperatures.
For Q4 FY26, Genesis achieved an electricity netback of $189/MWh, an 11.6% increase on the prior corresponding period, aligning with expectations during its single brand transition. Total customer numbers decreased by 5.8% to 490,227, reflecting accelerated brand migration. Total electricity sales were 1,543 GWh, down 153 GWh on pcp, largely due to this brand consolidation and milder May and June temperatures. Hydro generation remained stable at 703 GWh, with storage levels increasing, while thermal generation significantly decreased to 527 GWh due to higher hydro and reduced market demand.
Genesis Energy continues to advance its FY32 Growth Plan, progressing key initiatives like commissioning Stage 1 of the Huntly Battery Energy Storage System (BESS) and advancing its grid-scale solar development pipeline, including Tihori and Leeston. Digital transformation programmes, including billing and CRM upgrades, are on schedule, with total major projects digital spend of $145 million remaining on track. The nearing completion of the single brand transition will incur approximately $5 million of one-off operating expenditure in FY26 and $6 million in FY27, aiming to improve customer netback. Due to the warmer Q4, FY26 EBITDAF is now expected at the lower end of guidance updated on 23 April 2026.
