The Genesis Energy Ltd (ASX: GNE) share price is up 3.74% to $3.61 in late morning trade, bucking the wider market slide that's seen the All Ordinaries Index (ASX: XAO) fall 0.78%.
This follows the release of the Kiwi energy company's second quarter performance report.
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Quarterly performance powers up
In its retail sector, Genesis reported its LPG business for Q2 was the strongest summer period ever for the company. The company attributed the growth to an increase in residential customers in the main centres, alongside strong growth from its new depot in Whangarei.
While cost to serve (CTS) trended lower, the company noted some delayed costs will impact CTS in the second half of the 2021 financial year by around $1. It also reported an increase in customer churn, due to a 10% increase in national home moving switches in its New Zealand market.
On the sustainability front, Genesis confirmed its commitment to a science-based target in line with limiting global warming to 1.5 degrees Celsius. The company has pledged to reduce emissions by 1.2 million tonnes or more by 2025.
Commenting on the company's sustainability commitments, Genesis Energy's CEO Marc England said:
Genesis has committed to the most aggressive emissions reduction target by a New Zealand energy company. We chose the 1.5-degree target knowing it will be difficult but achievable with the right planning and pathway.
The company's Waipipi development is forecast to be fully operational by March. Generation already started back in November, producing 30 Gwh of renewable energy in Q2. Noting that La Nina may reduce South Island inflows in the third quarter, Genesis said it may be asked to provide additional thermal back-up energy to the market.
Genesis Energy has a 46% interest in the Kupe Joint Venture, which owns the Kupe Oil and Gas Field offshore of Taranaki, New Zealand. It reported the Kupe strategic review is on track with conclusions expected by mid-2021.
Genesis Energy share price and company snapshot
Genesis Energy sells electricity, reticulated natural gas and LPG through its retail brands of Genesis Energy and Energy Online to customers in New Zealand. With some 500,000 customers, the company is New Zealand's largest energy retailer. Genesis is listed on both the New Zealand and Australian exchanges. Shares first listed on the ASX in April 2014.
With today's intraday gains, the Genesis Energy share price is up 17.2% over the past 12 months. Shares are up 4.6% so far in 2021.
