{
  "id": 3622786,
  "title": "Genesis earnings rise, but profit halves on valuation hit",
  "url": "https://urgent.news/2026/08/27/genesis-earnings-rise-but-profit-halves-on-valuation-hit",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-27T00:17:23.000Z",
  "source": {
    "name": "RNZ Business",
    "slug": "rnz-business",
    "url": "https://www.rnz.co.nz/news/business/1151559/genesis-earnings-rise-but-profit-halves-on-valuation-hit"
  },
  "original_language": "en",
  "account": "Genesis Energy reported a rise in normalized operating earnings to $522 million, up 11% compared to the previous year. However, reported profit halved to $85 million, primarily due to a $123 million negative fair-value movement on financial instruments such as electricity swaps, options, and power purchase agreements. The company's revenue decreased to approximately $2.8 billion from $3.7 billion, primarily due to lower wholesale electricity volumes and prices. Nevertheless, stronger retail margins and better portfolio management helped offset this decline.\n\nGenesis CEO Malcolm Johns credited disciplined strategy execution for the results, highlighting improvements in margin quality, cost discipline, and capital management across the business. The company has invested around $3 billion over the next five years in products, services, and generation assets. To strengthen its balance sheet, Genesis raised $400 million in capital, reducing its debt leverage ratio to 1.6 times. This funding has supported investments in solar, battery storage, and upgrades at Huntly.\n\nGenesis has begun construction on the 136 megawatt Tihori solar farm near Edgecumbe and finalized investment decisions for the Leeston solar farm and the second stage of the grid-scale battery project at Huntly. The first stage of the Huntly battery is expected to be fully operational by September 2023. For the 2027 financial year, Genesis forecasts normalized EBITDAF to range between $480 million and $520 million, with a path to reach the upper $500 million range by 2028.",
  "summary": "Chief executive Malcolm Johns said the results reflected another year of disciplined strategy execution.",
  "key_points": [
    "Genesis Energy's normalized operating earnings rose 11% to $522 million",
    "Reported profit halved to $85 million due to valuation hit on financial instruments",
    "Company invested $3 billion in solar, battery storage, and Huntly upgrades"
  ],
  "editors_take": "Genesis's disciplined strategy and investments in growth areas such as solar and battery storage position it for long-term financial stability despite short-term profit volatility from valuation hits.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}