Summer Energy Parent Reports Profit, Compressed Unit Margins On Shift To C&I Market
May 16, 2019 Email This Story Copyright 2010-19 EnergyChoiceMatters.com
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Summer Energy Holdings, Inc. reported net income of $112,254 for the three months ended March 31, 2019, versus a loss of $637,155 a year ago
For the three months ended March 2019, gross profit totaled $5.8 million, versus $4.1 million a year ago
While overall gross profit increased, Summer Energy Holdings reported a lower profit margin, "which is a result of compressed unit margin caused by the competitive pressures in the marketplace, a customer base for the Company that has shifted towards a greater number of commercial accounts as opposed to residential accounts which yield lower unit margins and a lower delivered volume in the Northeast market."
Revenues for the three months ended March 31, 2019 were $34.8 million, versus $34.0 million a year ago.
For the 2019 quarter, revenues in ERCOT were $31 million, prepaid revenues in ERCOT were $1.2 million, and Northeast revenues were $1.9 million. Fee revenue was about $1 million.
In the ERCOT Pre-Paid Market, the delivered volume increased by 25.19% due to customer growth. The Northeast Market had a 37.70% decrease in delivered volume related to the decrease in the customer base and to a milder winter in 2019 compared to 2018.
"Management plans to continue to execute on its sales and marketing program to solicit individual commercial and residential customers and to realign key sales personnel to focus on building the customer base in the Northeast Market. In addition, management also plans to continue to acquire portfolios of commercial and residential customers when offered at reasonable prices," Summer Energy Holdings said