Energy Choice
                            

Matters

Archive

Daily Email

Events

 

 

 

About/Contact

Search

Genie Retail Energy Reports Organic Customer Growth, Electric Unit Margins Down Due To Intensification Of Competition, Customer Mix Changes

May 4, 2017

Email This Story
Copyright 2010-17 EnergyChoiceMatters.com
Reporting by Karen Abbott • kabbott (at) energychoicematters.com

Genie Retail Energy (GRE), the parent of IDT Energy and other retail energy brands, reported customer growth during the quarter ending March 31, 2017 (first quarter), while earnings were down slightly due to lower margins.

Genie Retail Energy was serving 418,000 meters as of March 31, 2017, versus 412,000 as of December 31, 2016 and 393,000 as of March 31, 2016. Genie Retail Energy said that the quarter marked a return to organic growth (the net customer growth recorded during the three months ended December 31, 2016 had resulted from the previously reported acquisition of the Town Square Energy companies).

Electricity meters as of March 31, 2017 were 307,000, and natural gas meters were 111,000.

On a Residential Customer Equivalent basis, Genie Retail Energy was serving 287,000 RCEs as of March 31, 2017, versus 283,000 as of December 31, 2016 and 247,000 a year ago.

Gross meter acquisitions in 1Q17 increased to 84,000 from 65,000 in the year-ago quarter. Meters enrolled in offerings with fixed rate characteristics constituted approximately 31% of GRE’s electric load during March 2017 compared to 32% of GRE’s electric load during December 2016.

GRE’s average monthly customer churn increased to 6.1% in 1Q17 from 5.9% in the year ago quarter, and improved from 6.4% in 4Q16.

GRE’s income from operations decreased to $7.7 million in 1Q17 from $10.7 million in the year-ago quarter reflecting the reduced gross profit on electricity sales and the increased pace of customer acquisitions. Adjusted EBITDA decreased to $8.3 million in 1Q17 from $10.9 million in 1Q16.

GRE’s gross profit in 1Q17 was $23.6 million compared to $24.0 million in 1Q16 primarily driven by the narrowing of the gross margin percentage on sales of electricity, partially offset by the increases in kilowatt hours sold and improvement in the gross margin percentage on gas sales. The average revenue per kilowatt-hour sold declined even as the underlying commodity cost increased, "reflecting intensification of competition in key markets, and an increase in the proportion of customers on plans with fixed rate characteristics," GRE said

GRE’s revenue increased to $69.4 million in 1Q17 from $58.9 million in 1Q16 on increased sales of both electricity and natural gas.

ADVERTISEMENT
NEW Jobs on RetailEnergyJobs.com:
NEW! -- Sr. Energy Consultant
NEW! -- Manager of Regulatory Affairs -- Retail Supplier
NEW! -- Sales Support Specialist Energy Solutions -- Retail Supplier
NEW! -- Paralegal, Regulatory Affairs -- Retail Supplier -- Houston
NEW! -- Corporate Counsel -- Retail Supplier
NEW! -- EDI Transactions Manager -- Retail Supplier -- Houston
NEW! -- Director of Channel Sales -- Retail Supplier
NEW! -- Sales Manager -- Retail Supplier -- New York
NEW! -- Sales Manager -- Retail Supplier -- MA / NJ
NEW! -- Sales Agent -- Retail Supplier -- Multiple markets
NEW! -- Customer Retention -- Retail Supplier -- Houston
NEW! -- Regulatory Response I/C -- Retail Supplier -- Houston
NEW! -- Channel Manager, Sales -- Retail Supplier -- Houston
NEW! -- Commercial Sales B2B -- Retail Energy
NEW! -- Brand/Marketing/Channel Manager -- Retail Energy
NEW! -- Business Development Professional -- Retail Supplier -- Houston

Email This Story

HOME

Copyright 2010-16 Energy Choice Matters.  If you wish to share this story, please email or post the website link; unauthorized copying, retransmission, or republication prohibited.

 

Archive

Daily Email

Events

 

 

 

About/Contact

Search