Summer Energy Reports Quarterly Results
November 15, 2019 Email This Story Copyright 2010-19 EnergyChoiceMatters.com
Reporting by Paul Ring • firstname.lastname@example.org
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Summer Energy Holdings, Inc., the parent of the Summer Energy retail providers, reported earnings for the three months ended September 30, 2019
For the three months ended September 30, 2019 gross profit totaled $2.7 million, versus $1.3 million a year ago
The gross profit margin increased for the quarter ended September 30, 2019 compared to September 30, 2018 primarily due to a 16.42% increase in the volume of MWhs of electricity delivered in the ERCOT market.
"Cost of power purchases increased during the third quarter September 2019 compared to the third quarter ended September 2018 due to declining reserve margins in the ERCOT marketplace. Furthermore, due to extreme unpredictable weather during July 2018, the Company experienced higher than normal power costs for the quarter ended September 2018 resulting in a larger than anticipated gross margin loss for the quarter ended September 2018 compared to the quarter ended September 2019. Although the 2019 summer months in the ERCOT market proved to be one of the hottest in recent years, the Company had positioned itself so that the weather did not significantly impact the earnings for the quarter ended September 2019," the company said
Net loss for the three months ended September 30, 2019 was $3.3 million, versus a net loss of $5.3 million a year ago
Total revenue for the quarter was about $55 million for the quarter, versus $46 million a year ago
For the three months ended September 30, 2019, about $50 million in revenue was derived from non-prepaid sales in ERCOT, $2 million was derived from the prepaid market in ERCOT, $2 million was from the Northeast market, about $2,500 was from the Midwest market, and $1 million was from fees
Delivered volumes for the three months ended September 30, 2019 were 595,293 MWh, versus 522,710 MWh a year ago
For the three months ended September 30, 2019, non-prepaid market ERCOT volumes were 558,274 MWh, volumes in the prepaid market in ERCOT were 16,599 MWh, Northeast volumes were 20,374 MWh, and Midwest volumes were 46 MWh
Summer Midwest began flowing electricity in the state of Ohio during the month of July 2019. As of the date of its Quarterly Report, there were no sales activities in the state of Illinois.
"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," the company said