Genesis Energy Ltd

GNE: XNZE (NZL)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	NZD 2.20	Wjtxsg	Hgpcrpdwr

Genesis Energy: Cutting Dividends by 20% to Fund Renewable Transition

Adrian Atkins

Nov 30, 2023

Narrow-moat-rated Genesis Energy announced at its investor day that it will accelerate investment to transition to 95% renewable energy by 2035, with the investment partly funded by a 20% cut to dividends. We support the strategy, with greater investment better offsetting longer-term earnings headwinds from the depletion of Kupe and closure of thermal power stations. After lowering the dividend, the firm still offers a solid 5.9% yield at current prices, with management guiding to Consumer Price Index-like growth in dividends.

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