Retail Supplier Contemplates Spinning Off International Suppliers, To Position U.S. Suppliers For Growth

In reporting earnings today, Genie Energy, Ltd. said that, "Genie is conducting a strategic review of its businesses in part to address the different investment profiles of its U.S. and European businesses and to enhance shareholder value across its operations."

"As one element of this review, the Company is contemplating opportunities to separate GREI [Genie Retail - International] from GRE [Genie Retail - US] and Genie Renewables through a spin-off of GREI into a separate, publicly-traded entity. If a transaction is consummated, Genie believes that shareholders could benefit from the potential spin-off of GREI with adequate capital and a dedicated management team empowered to gain scale and accelerate growth in its current and prospective European markets. The remaining US operations, GRE and Genie Renewables would then be positioned to accelerate their respective growth plans," Genie said.

As previously reported, Genie already this year sold its retail energy business in Japan

Genie said further updates will be provided on its earnings call today; this story will be updated as needed based on such discussion

In the Genie Retail - US (GRE) segment, meters served as of June 30, 2021 were 361,000, versus 373,000 as of March 31, 2021 and 374,000 a year ago

Genie Retail - US RCEs as of June 30, 2021 were 330,000, versus 347,000 as of March 31, 2021 and 343,000 a year ago

GRE gross meters added during the quarter were 35,000, down from 60,000 in the quarter ending March 31, 2021 and 40,000 a year ago

Average monthly churn was 3.8% for Q2 2021, versus 4.9% in Q1 2021 and 3.9% a year ago

"While gross meter acquisitions have not yet returned to pre-COVID levels, churn remained below pre-COVID levels due to remaining restrictions on door-to-door marketing across the industry that lead to fewer customers switching suppliers," Genie said

As of June 30, 2021, Genie Retail - International was serving 193,000 meters, versus 147,000 a year ago

On a consolidated basis, Genie reported income from operations of $1.4 million for the second quarter of 2021, versus $2.7 million in the year-ago quarter

Gross profit and gross margin were $23.8 million and 24.3%, respectively, for 2Q 2021, versus $19.5 million and 25.6%, respectively, in the year-ago quarter

Revenue was $97.7 million for the quarter, versus $76.1 million in the year-ago quarter