Genesis Energy Holdings Ltd
Genesis Energy's principal activities are the operation of transportation and storage facilities for crude oil and the operation of a natural gas pipeline network, as well as refilling stations supplying natural gas and liquefied petroleum gas for vehicles. Other activities include provision of management and administration services and investment holding. Operations are carried out in Hong Kong, the British Virgin Islands and mainland China.
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Genesis Energy Holdings continues expansion in challenging year
Genesis Energy Holdings Ltd recorded a 32.1 percent increase in turnover for 2008, to HK$40.1m. This resulted in a total loss for the year of HK$8.6m, up 66 percent from 2007.
However last year saw capacity in its US oilfields revised up, and in 2009 the company has acquired a new oilfield and waste-to-energy business in China.
The company’s increased turnover was mainly due to revenue from its US oil fields, and income growth from its natural gas filling stations. Although consolidated gross profit rose to HK$11.9m from HK$7.9m in 2007, Genesis sustained a one-off loss of HK$91.4m from the disposal of its loss-making natural gas pipeline business in Xinjiang province, which caused a loss for 2008 of HK$140.1m, up from a loss of HK$7.9m for 2007.
Particularly volatile energy prices, with Brent crude dropping from its peak of US$144.22 to US$36.55 at year-end, also affected the company’s performance.
The company holds two blocks of US oilfields, Grassy Trails and Squaw Canyon, around Utah; in February 2008, the proven reserve was revised up to 1.8m barrels. Due to snowstorms, production remained unstable until August 2008.
In early 2009, Genesis acquired the Liu Luo Yuan oilfield in Shaanxi province, with more than 80 wells and a monthly production of 1,000 tonnes. The field is expected to provide stable income due to regulated oil prices in China. The company has also entered the waste-to-energy sector, through the acquisition of 30 percent of a waste incineration power plant in Datong, Shanxi. The company has also formed an alliance with Frankfurt-listed ZhongDe Waste Technology AG Industry, to pursue business opportunities in new energy sectors.
