New Morningstar Analyst Report for Genesis Energy Ltd

Genesis Energy is one of New Zealand's leading producers of electricity, accounting for 17% of the country's total generation. The firm enjoys a strong retail presence and, with approximately 556,591 customers, Genesis Energy has the highest retail market share at about 27%. The New Zealand electricity market is dominated by four major players that include Genesis Energy and three other vertically integrated power companies. As such, we believe Genesis Energy deserves a narrow economic moat rating on the basis of efficient scale given New Zealand's small population base and limited growth opportunities which could preclude would-be entrants from earning an adequate return on capital. Consequently, Genesis Energy, like its peers, should continue to earn returns above its cost of capital in the long run.