GNE - Genesis Energy

[Basil]

It seems to me that GNE can consistently pay a significantly higher yield than the others so from a show me the money / dividend hounds point of view it's the best buy.

I'm happy to leave the ESG prognostications to others. We need base load support for all the new renewable wind and solar and GNE owns that and the Government are legislating that others in the industry have to pay GNE for that support. That puts GNE in a much stronger negotiating position for future HFO deals. I added a few more recently.

[Shareguy]

Hm...

https://www.rnz.co.nz/news/personal-finance/723771/the-power-company-losing-the-most-customers

[Basil]

I had a good chat with them about this at the recent investor day.  Genesis had two other price leading brands and they had cut some remarkably cheap mid teens per kw/hr fixed price deals.  As GNE has been reintegrating those brands under the Genesis brand many of those customers extremely attractive deals have expired and some of the customers have chosen to go elsewhere.

[Cod]

Share split at bottom of channel & covid low, earnings end of Aug, price I believe will drift sideways to stay in channel and AVWAP's (2.29 -- 2.65) note topping on RVGI and double trix.
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[Shareguy]

Craigs have added to Kiwi conviction portfolio

Insert from latest note

We also introduce GNE to the portfolio with a 5% weight. GNE has long traded at a discount to its gentailer peers (MCY, MEL, CEN) given its higher exposure to non-renewables. However, our analyst research highlights i) GNE is well on its way to transitioning its portfolio to renewables and ii) that even after this transition is complete, it will offer a much higher yield. We think this yield gap will close over the next six years as GNE completes its transition (as happened to CEN), underpinning outperformance of c.30% relative to peers. We fund GNE by exiting MEL, given its lower yield relative to growth.

[Basil]

Thanks for sharing Shareguy, living up to your user name 😀  Good call by Craigs in my opinion.

I was very impressed with Malcolm Johns at the NZSA investor day held some months ago.  It was a bit disappointing he had to leave the briefing a bit early for an unexpected meeting with the Prime Minister but its clear John's has the PM's ear as a few weeks later the planned infrastructure of an import terminal for LNG was announced, then came another scheme of assistance to help large business's transition off natural gas and then some time after that the new proposed legislation that mandates the other Gentailiers are legally required to enter into contractual agreements to purchase back up generation capacity for the times when the wind isn't blowing (60% of the time according to Johns) and the sun is not shining, (80% of the time).

Gosh that was a LOT of change in a very short space of time since John's met with the PM. I think the recent changes in the landscape in terms of these matters are a tailwind for GNE who currently control 80% of the non renewable reserve generation market, according to Johns.
Disc: I've been quietly adding more GNE shares since I attended that very helpful N.Z. shareholders association company visit.    That one company visit was more than worth the annual membership fee to me.