Genesis Energy Ltd

GNE: XNZE (NZL)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	NZD 6.30	Pkphh	Rmxmldyg

Genesis Energy: Rainfall and Earnings Normalizing

Adrian Atkins

Apr 23, 2024

Narrow-moat Genesis Energy had a stellar fiscal 2023 as its hydroelectric schemes benefited from heavy rainfall in the North Island. In the fiscal year to date, rainfall has been more modest, and we estimate earnings are tracking broadly in line with our prior expectations. We maintain our view that Genesis can achieve its EBITDA guidance of NZD 430 million for fiscal 2024 and NZD 500 million for 2025. We keep our NZD 2.70 per share fair value estimate and consider the stock slightly undervalued.

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