{"id":297286,"date":"2026-02-22T23:56:08","date_gmt":"2026-02-22T23:56:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/297286\/"},"modified":"2026-02-22T23:56:08","modified_gmt":"2026-02-22T23:56:08","slug":"genesis-energy-plans-400m-equity-raise-after-record-first-half-profit","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/297286\/","title":{"rendered":"Genesis Energy plans $400m equity raise after record first-half profit"},"content":{"rendered":"The $400m equity raise would be used to accelerate the development of its growth opportunities across renewable generation and dispatchable firming capacity, and underpin delivery of its \u201cGen35\u2033 strategy.<\/p>\n
The offer comprises an underwritten placement of $100m at $2.15 per share and an underwritten 1 for 7.9 pro rata renounceable rights offer to raise $300m at a price of $2.05 per share.<\/p>\n
The Government has committed to subscribe to $198m worth of new shares, which will enable it to maintain its 51% stake.<\/p>\n
The proceeds from the offer will initially be used to reduce net debt.<\/p>\n
Among the highlights for the half were:<\/p>\n
\u2022 Edgecumbe solar farm (136 MWp) Final Investment Decision (FID) delivered and construction will commence in Q4 FY26.<\/p>\n
\u2022 Leeston solar farm (67 MWp) is on track for Final Investment Decision in Q4 FY26.<\/p>\n
\u2022 Rangiriri solar farm (271 MWp) was acquired. Once operational, the Rangiriri solar farm is expected to generate around 437 GWh of electricity annually \u2013 enough to power 54,600 homes.<\/p>\n
\u2022 Huntly BESS Stage 1 (100 MW\/200 MWh) remained on track and within budget<\/p>\n
\u2022 10-year Huntly Firming Options for Rankine capacity were authorised by the Commerce Commission and came into effect on January 1, 2026.<\/p>\n
The half started with record low inflows and snowpack, before spring saw South Island inflows, particularly at Tekapo, enabling higher hydro generation and materially reduced thermal generation.<\/p>\n
Coal generation fell to 164 gigawatt hours (GWh) from 710 GWh in the prior corresponding period, as thermal assets shifted from baseload to flexible firming.<\/p>\n
\u201cThis integrated portfolio response reduced Genesis\u2019 carbon emissions and lowered the cost of generation,\u201d the company said.<\/p>\n
\u201cThe result reinforces the structural flexibility advantage of Genesis\u2019 portfolio \u2014 enabling earnings to be defended in dry periods and enhanced in favourable conditions.”<\/p>\n
The capital raise would serve to accelerate Genesis\u2019 pipeline of growth opportunities across renewable generation and dispatchable firming capacity, chief executive Malcolm Johns said.<\/p>\n
\u201cGenesis has developed a strong pipeline of attractive growth investments, with this new equity raise offer enabling the acceleration of circa $2b pipeline of growth opportunities to financial year 2032 across renewables and dispatchable firming capacity,\u201d he said.<\/p>\n
In its outlook, Genesis\u2019 2026 normalised ebitdaf guidance remained unchanged at $490m \u2013 $520m.<\/p>\n
Genesis\u2019 2028 normalised ebitdaf target increased from mid to upper $500m to upper $500m – the higher end of a previously indicated range.<\/p>\n
The company published its 2032 normalised ebitdaf outlook of $650m \u2013 $750m.<\/p>\n
Finance Minister Nicola Willis said the capital raise would support and advance the Government\u2019s goals for secure and affordable energy.<\/p>\n
\u201cWe confirmed last year that we would consider requests from all three Mixed Ownership Model energy companies for Crown investment in commercially sound generation capacity,\u201d Willis said.<\/p>\n
\u201cGenesis\u2019 proposed investments will directly contribute to enhancing energy security, including through enabling Genesis to bring more flexible capacity to the market which can be used to address dry-year risk,\u201d she said.<\/p>\n
JamieGray is an Auckland-based journalist, covering the financial markets, the primary sector and energy. He joined the Herald in 2011.<\/p>\n
Stay ahead with the latest market moves, corporate updates, and economic insights by subscribing to our\u00a0Business newsletter<\/a>\u00a0\u2013 your essential weekly round-up of all the business news you need.<\/p>\n","protected":false},"excerpt":{"rendered":"The $400m equity raise would be used to accelerate the development of its growth opportunities across renewable generation…\n","protected":false},"author":2,"featured_media":297287,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[31987,118410,74,138,1667,1137,15218,33439,1132,111,139,69,26346,2171,5340,2515,1974,5352,3048],"class_list":{"0":"post-297286","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-31987","9":"tag-400m","10":"tag-after","11":"tag-business","12":"tag-energy","13":"tag-equity","14":"tag-firsthalf","15":"tag-genesis","16":"tag-million","17":"tag-new-zealand","18":"tag-newzealand","19":"tag-nz","20":"tag-planned","21":"tag-plans","22":"tag-profit","23":"tag-raise","24":"tag-record","25":"tag-reporting","26":"tag-said"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/297286","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=297286"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/297286\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/297287"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=297286"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=297286"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=297286"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}