Genesis Energy reports a125% increase in first-half net profit, reflecting increasing earnings from its share of the Kupe oil and gas field.

Meridian Energy surprised a select committee this morning with support for changes to the electricity industry, including asset swaps that would see Genesis Energy taking on two of its hydro power stations in the South Island.

Previously, Meridian has said it would prefer to avoid a physical asset swap and instead focus on financial hedging arrangements.

State-owned Genesis Energy has confirmed it will drop gas exploration and coal production, but it would not comment on what effect that might have on the company's balance sheet until the company results are announced next week.

The company will exit gas and coal production – apart from Kupe, in a reorganisation of its profile that includes a focus on more economic (renewable) generation and a reshaped retail division.