Genesis Energy flags lower earnings despite $189 netback

• Warmer temperatures tracked Genesis Energy's full-year earnings towards the lower end of previous guidance.
• The company's shares traded flat following the release of its fourth-quarter operational update.
• Management focused on margin quality and product simplification to offset lower overall customer numbers.

Genesis Energy (ASX:GNE) expects full-year earnings at the lower end of guidance following warmer fourth-quarter temperatures.

Electricity netback rose 11.6% on the prior period to NZ$189 per megawatt hour despite reduced customer numbers.

Total electricity sales dropped 153 gigawatt hours to 1,543 gigawatt hours as milder weather reduced demand.

Thermal generation fell 567 gigawatt hours to 527 gigawatt hours, facilitating the temporary hibernation of Unit 5.

Following the announcement, the Genesis Energy share price was unchanged at $2.15.

The business continued transitioning customers to a single brand while simplifying its overall commercial product offerings.

A coal stockpile exceeding one million tonnes continues to support supply security alongside diversified international sourcing.