Genesis Energy Shares Fall Nearly 4% on ASX as New Zealand Power Producer Extends Weak One-Year Performance
The New Zealand electricity generator and retailer declined in unusually thin trading, while its primary NZX listing accounts for most shareholder activity.
SYDNEY — Shares of Genesis Energy fell nearly 4% on the Australian Securities Exchange on Friday, adding to losses for the New Zealand electricity generator and retailer over the past year.
Genesis shares closed down 7.5 New Zealand cents, or 3.73%, at 1.935 Australian dollars on the ASX. The stock traded between 1.935 and 1.985 dollars. The company has a market value of about 2.6 billion dollars.
Trading on the ASX was extremely light, with only 253 shares changing hands. Genesis' primary listing is on New Zealand's NZX, where most of its shares trade, meaning ASX price moves can be exaggerated by small trades.
No company announcement
Genesis did not release any market-sensitive news on Friday.
The decline came on a day when broader Australian markets rose following a strong session on Wall Street overnight, while energy stocks were among the weaker performers.
New Zealand power market
Genesis is one of New Zealand's largest electricity generators and retailers, supplying electricity, natural gas and LPG to households and businesses. It operates a mix of hydroelectric and thermal power stations, including the Huntly power station, which can run on coal and gas and plays an important role in securing New Zealand's power supply during dry periods.
New Zealand's electricity market has faced challenges in recent years, including volatile wholesale prices, concerns about gas supply and the country's reliance on hydroelectric generation, which depends on rainfall.
Recent industry data showed national electricity demand in New Zealand fell 0.5% in September from a year earlier, while wholesale revenue per megawatt-hour declined for some generators.
Weak year
Genesis shares are down about 10% over the past year, lagging some of its New Zealand peers.
Rival Contact Energy has benefited from strong growth in renewable generation and its acquisition of Manawa Energy, while Genesis has been working to reduce its reliance on thermal generation and expand renewable capacity.
Energy transition
Genesis has set out plans to increase renewable generation, including solar and battery projects, while maintaining backup thermal capacity to support the grid during periods of low hydro generation.
The company also faces policy uncertainty as New Zealand's government considers changes to the electricity market to improve security of supply and affordability.
What's next
Investors will be watching Genesis' monthly operating reports for trends in generation, retail customer numbers and wholesale pricing, as well as updates on its renewable development pipeline and the outlook for New Zealand's hydro storage levels heading into summer.