GENESIS ENERGY Reports Record Earnings for Q2 FY2023
August 8, 2023
☀️Earnings Overview
On August 3, 2023, GENESIS ENERGY ($NYSE:GEL) reported a total revenue of USD 804.7 million for the second quarter of FY2023 (ending June 30, 2023), a 11.5% increase from the same quarter in the previous year. Net income increased by 39.6%, year over year, and was reported at USD 49.3 million.
Share Price
On Thursday, GENESIS ENERGY reported record earnings for its second quarter of fiscal year 2023. The energy company’s stock opened at $9.1 and closed at $8.4 – a drop of 10.8% from the previous closing price of $9.4. This decrease was the result of investors’ generally pessimistic outlook in response to the company’s earnings report. Despite strong financial performance, investors were not impressed, pushing the stock price down almost 11% from its opening price.
This may have been due to the company’s weak guidance for the rest of the fiscal year, with GENESIS ENERGY projecting a decline in revenue due to declining demand in certain sectors. Overall, GENESIS ENERGY’s second quarter performance was impressive but investors responded negatively to the company’s guidance and its stock price dropped 10.8% from its opening price. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Genesis Energy. More…
| Total Revenues | Net Income | Net Margin |
| 3.03k | 3.46 | 3.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Genesis Energy. More…
| Operations | Investing | Financing |
| 431.43 | -472.33 | 42.69 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Genesis Energy. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 6.67k | 4.93k | 11.45 |
Key Ratios Snapshot
Some of the financial key ratios for Genesis Energy are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 12.0% | 20.5% | 11.4% |
| FCF Margin | ROE | ROA |
| -1.9% | 15.3% | 3.2% |
Analysis
GoodWhale conducted an analysis of GENESIS ENERGY‘s fundamentals and found its overall health score to be 6/10 according to our Star Chart. This suggests that GENESIS ENERGY has potential to pay off debt and fund future operations. Furthermore, we determined that GENESIS ENERGY is strong in dividend, medium in growth, profitability and weak in asset. Our analysis also categorized GENESIS ENERGY as a ‘cheetah’ – a type of company that achieved high revenue or earnings growth but is considered less stable due to lower profitability. Investors looking to capitalize on GENESIS ENERGY’s potential for growth and earnings should be aware of the associated risks. As a ‘cheetah’, GENESIS ENERGY may offer a higher return than other companies, but this potential reward is accompanied by higher risk. Investors should consider their own risk tolerance and whether investing in GENESIS ENERGY is the right fit for them. More…
Peers
The competition between Genesis Energy LP and its competitors, Tidewater Midstream and Infrastructure Ltd, ONEOK Inc, and Kinder Morgan Inc, is fierce. All four companies are vying for market share in their respective industries and are working to develop innovative solutions to stay ahead of the competition.
– Tidewater Midstream and Infrastructure Ltd ($TSX:TWM)
Tidewater Midstream and Infrastructure Ltd is a Canadian energy infrastructure company that operates in the business of developing, owning and operating midstream and infrastructure assets. The company has a market cap of 439.95M as of 2023. Its Return on Equity (ROE) is 10.94%, which measures how well the company is creating value for its shareholders. Tidewater Midstream and Infrastructure Ltd primarily focuses on developing crude oil, natural gas and natural gas liquids (NGLs) infrastructure solutions in the Western Canadian Sedimentary Basin.
– ONEOK Inc ($NYSE:OKE)
ONEOK Inc is a diversified energy company based in Tulsa, Oklahoma. It provides a range of services related to natural gas gathering, processing, storage and transportation, as well as natural gas liquids (NGL) distribution, fractionation and marketing. The company’s market cap as of 2023 stands at 31.34 billion U.S. dollars, reflecting a strong position within the energy sector. ONEOK’s Return on Equity (ROE) has also been impressive, with a value of 28.37% as of 2023. This is a measure of profitability that shows how well the company is using its invested capital to generate returns. It is an indication of the company’s financial health and ability to generate value for shareholders.
– Kinder Morgan Inc ($NYSE:KMI)
Kinder Morgan Inc is an energy infrastructure company based in the United States. It operates pipelines that transport natural gas, crude oil, and refined products, as well as terminals, storage, and related assets. As of 2023, the company has a market cap of 42.3 billion dollars and a Return on Equity (ROE) of 7.96%. This indicates that for every dollar of equity, Kinder Morgan Inc is able to generate 7.96 cents of profit. With such a large market cap and impressive ROE, Kinder Morgan Inc is well-positioned to continue to be a leader in the energy infrastructure industry.
Summary
Investors of Genesis Energy were disappointed by the company’s earnings results for the second quarter of FY2023, announced on August 3, 2023. Total revenue increased 11.5% year-over-year to USD 804.7 million, however net income was only up 39.6% to USD 49.3 million. This, along with the stock price moving down the same day, indicates that investors may be wary of the company’s future prospects. Investors should keep a close eye on the company’s upcoming earnings reports, closely monitor its financial performance, and consult professional financial advisors before considering investing in Genesis Energy.
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