Just Energy Quarterly Results Negatively Impacted By, "Numerous Headwinds, Mostly Non-Recurring"

Just Energy reported quarterly results for the period ending September 30, 2017

Just Energy reported Base EBITDA of $20.5 million for the quarter ending September 30, 2017 (second fiscal quarter), a decrease of 64% compared to the $56.9 million reported in the second quarter of fiscal 2017 (all $ Canadian).

The company said that it experienced a number of challenges in the quarter, many of which are non-recurring.

The EBITDA was below company expectations due to reduced per-customer consumption arising from the abnormally mild summer weather in North America and hurricane and tropical storm patterns, including customer disruptions caused by Hurricane Harvey.

Just Energy reported that impacts from Hurricane Harvey negatively impacted Base EBITDA by $5.6 million versus the year-ago quarter, while weather was responsible for a negative $16.5 million impact

Competitive market conditions also resulted in a one-time reduction in Texas renewal margins. The lower EBITDA in the quarter was also attributable to the company’s significant investments in strategic sales growth initiatives, Just Energy said

Highlights from the quarter include:

• Continued execution of retail channel expansion strategy with 152 new store launches across eleven different retail partners for a total of 237 stores. The company remains on track to achieve its goal of being present in 500 stores by fiscal year-end

• RCE count as of September 30, 2017 was 4.087 million, up 11,000 from 4.076 million as of June 30, 2017

• Gross RCE additions for the quarter were 310,000, an increase of 58% year-over-year, and 27% sequentially

Just Energy is holding an earnings call today, ECM will have more details on Just Energy quarterly results tomorrow