Genie Retail Energy Reports Record Third-Quarter Gross Profit & Adjusted EBITDA

In reporting earnings for the third quarter ended September 30, 2022, Genie Energy, Ltd. said that its Genie Retail Energy (GRE) segment posted record third quarter gross profit, income from operations, and Adjusted EBITDA

"GRE delivered record third quarter gross profit, income from operations, and Adjusted EBITDA, highlighted by strong margins in its retail book," Genie said

In 3Q22, GRE generated income from continuing operations and Adjusted EBITDA of $27.4 million and $27.7 million, respectively, compared to $19.7 million and $20.0 million, respectively, in the year-ago quarter

GRE gross margin was 54.1% in the third quarter of 2022, up from 39.6% a year ago

GRE revenue was $79.9 million in the third quarter of 2022, versus $86.3 million a year ago

"Electric per meter consumption declined moderately versus the year-ago quarter but remained solidly above pre-COVID levels. As in prior quarters, GRE moderated customer acquisition to maximize the value of its portfolio, given the ongoing market volatility," Genie said of GRE

"GRE will continue monitoring the U.S. retail energy markets for customer acquisition opportunities. As volatility either moderates or becomes more palatable to customers, GRE expects to recalibrate its customer acquisition and retention programs to generate growth in its customer book," Genie said

Michael Stein, chief executive officer of Genie, stated, "We expect energy prices to remain volatile as we head into the Winter months, but we continue to be well-positioned from a risk management position and will return to customer acquisition mode on a market-by-market basis when the risk/reward balance is favorable."

GRE was serving 271,000 meters as of September 30, 2022, down from 280,000 as of June 30, 2022, 286,000 as of March 31, 2022, 285,000 as of December 31, 2021, and 361,000 as of a year ago.

GRE was serving 251,000 RCEs as of September 30, 2022, down from 263,000 as of June 30, 2022 and 336,000 a year ago

GRE added a gross of about 34,000 meters during the third quarter of 2022, about the same level as added during the second quarter of 2022, and 47,000 a year ago

Average monthly churn increased to 4.7% from 4.0% in the year-ago quarter and from 4.4% in the second quarter of 2022. The churn data excludes expiration of, "low margin aggregation deals."

In Genie's solar business, Genie Renewables (GREW), Genie said that Genie Renewables acquired site rights to 64 MW of solar projects, as part of building a portfolio of company-owned and/or controlled solar generation fields, and is advancing them through their permitting processes

As noted in our related story today, Genie announced that it has exited all of its international retail energy markets (see story here)