Stronger margins and lower generating costs have boosted Genesis Energy's half year profit.
Genesis Energy's Huntly Power Station. Photo: Genesis Energy
The company's bottom line profit rose nearly six-fold to $52.7 million, compared with $9.2m a year ago.
Stripping out one off costs, the company's underlying profit was up by just under a third to $217m.
Its revenue improved by more than 6 percent to $1.4 billion, as margins grew in its retail business and lower costs in its wholesale arm.
"Our retail business has delivered improved efficiencies without compromising on our vision to be 'customer's first choice for energy management," Genesis chief executive Marc England said.
"The wholesale segment experienced low hydro inflows and a volatile gas market, affecting electricity supply and prices."
England said the Huntly power station was supporting the market in anticipation of a dry year, but the high fuel costs that dented its bottom line last year have eased.
Genesis also benefited from full production from the Kupe oil field, which was disrupted the year before.
In the past six months, the company had completed its significant capital investment at its power station in Takapō which would improve generation efficiency by 2.5 percent.
The company said its new Waipipi wind farm would reach full generation next month, displacing between 250,000 and 370,000 tonnes of carbon emissions annually.
Genesis expected the market conditions seen in the first half to flow through to the second and lifted the mid point for its full year underlying profit guidance by $15m to $420m.
Commenting on the draft advice from the Climate Change Commission, the company said it took issue with the assumptions made around future electricity price and overly prescriptive timelines.
