Genesis Energy reported a 42 per cent lift in its operating earnings for the first half - boosted by increased hydro-power generation - and raised its earnings outlook for the year to June.

The company delivered earnings before interest, tax, depreciation, amortisation and financial instruments - ebitdaf - of $298 million, up from $210m in the previous comparative period.

The power generator and retailer also raised its 2023 full-year ebitdaf guidance to $515m from a previous guidance of $500m.

The revaluation of long-term contracts resulted in a net profit of $145m, a 72 per cent increase on the same period last year.

In the six months, Genesis generated a record 2034 gigawatt hours of electricity from its three hydro schemes, 43 per cent more than for the first half of 2022.

Conversely, this reduced thermal generation at its coal-powered Huntly Power Station to record lows, significantly lowering fuel costs and reducing carbon emissions from generation by 470,000 tonnes - a 52 per cent reduction.

Genesis increased its interim dividend to 8.8 cents from 8.7c.

Interim chief executive Tracey Hickman said, “these results fall at an incredibly challenging time for many New Zealanders, with Cyclone Gabrielle and the Auckland floods.

 “Genesis continues to offer support to communities and customers affected.”

Hickman said Genesis had progressed its strategic priorities, helping create a low-carbon future for New Zealand powered by renewable energy, over the six months.

This work included a successful trial of biomass burn at Huntly Power Station and securing the first site in its development of up to 500 megawatts of solar generation.

Genesis successfully completed the trial in mid-February, a significant step in its search for alternative fuel options for the Company’s thermal plant at Huntly.

“Biomass is seen internationally as a viable alternative to fossil fuels, in particular, in manufacturing and some industrial processes,” she said.

Hickman said Huntly would continue to be critical to the country’s electricity system looking ahead, and the company is committed to explore more renewable fuel options to replace coal.

Genesis has signed an agreement with Fonterra to work together in exploring the viability of a sustainable local supply chain of biomass.

Shares in Genesis last traded at $2.87, up 2 cents

The stock has gained 2.5 per cent over the last 12 months.