Genie Retail Energy Reports Record Gross Profit, Adjusted EBITDA; "Strong" Retail Margins

Genie Retail Energy (GRE) posted record fourth quarter gross profit, income from operations, and Adjusted EBITDA, "highlighted by strong margins in its retail book," parent Genie Energy, Ltd. said in announcing fourth quarter and full year 2022 earnings today

"As in prior quarters during 2022, GRE moderated customer acquisition efforts to maximize the value of its portfolio," Genie said

"During the quarter, our retail book grew modestly as we largely remain on the sidelines in terms of customer acquisition, excluding a small acquisition of book customers in the Midwest and Northeast," said Michael Stein, Genie chief executive officer.

"We strategically curtailed customer acquisition during a volatile wholesale pricing period allowing us to generate strong financial results. Now that volatility has diminished, we are positioned to return to customer growth. GRE's strong performance this year again demonstrated our ability to manage this business profitably through a wide range of market conditions," Stein said

GRE meters served were 275,000 as of 4Q22, versus 271,000 as of 3Q22 and 285,000 a year ago

GRE added a gross of about 47,000 meters during the fourth quarter of 2022, versus 34,000 in 3Q22 and 33,000 a year ago.

GRE RCEs were 262,000 as of 4Q22, versus 251,000 as of 3Q22 and 260,000 a year ago

Average monthly churn increased to 5.5% sequentially from 4.7% in the third quarter of 2022. Churn data excludes expiration of low margin aggregation deals

For the fourth quarter of 2022, GRE generated operating income and Adjusted EBITDA of $20.6 million and $20.9 million, compared to $8.3 million and $8.8 million a year ago, respectively

GRE gross margin was 44.4% for 4Q22, up from 34.5% a year ago

GRE revenue was $77.0 million for 4Q22, versus $67.9 million a year ago

For the full year 2022, GRE generated operating income and Adjusted EBITDA of $92.6 million and $93.8 million, compared to $34.7 million and $36.0 million a year ago respectively

For parent Genie Energy, Ltd., 4Q22 Adjusted EBITDA was $18.4 million, up from from $7.3 million a year ago