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Genie Energy Reports Fourth Quarter And Full Year Results
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Genie Energy, Ltd., the parent of Genie Retail Energy (GRE), announced results for the fourth quarter and full year ended December 31, 2023.
At GRE, fourth quarter 2023 income from operations decreased 26.8% to $15.0 million from $20.6 million a year ago, and Adjusted EBITDA decreased 26.4% to $15.4 million from $20.9 million a year ago.
GRE full-year 2023 income from operations decreased 22.3% to $71.9 million, and Adjusted EBITDA decreased 21.9% to $73.3 million, "reflecting GRE's elevated gross margins in the year-ago quarter and the increased pace of customer acquisitions in 2023 compared to 2022," the company said
GRE Gross Margin was 33.0% for 4Q23 versus 44.4% for 4Q22
GRE meters were 361,000 as of 4Q23, versus 385,000 as of 3Q23 and 275,000 a year ago
The net loss of 24,000 meters from 3Q23 to 4Q23 reflects the expiration of a Massachusetts aggregation, and compares to net growth of 4,000 meters from 2Q23 to 3Q23.
GRE Gross Adds were 52,000 meters during 4Q23, versus 60,000 during 3Q23 and 47,000 a year ago
GRE RCEs were 350,000 RCEs as of 4Q23, versus 375,000 as of 3Q23 and 262,000 a year ago.
GRE Churn was 5.4% for 4Q23, versus 4.4% for 3Q23 and 5.5% a year ago. The churn data excludes expirations of aggregation deals
Michael Stein, chief executive officer of Genie Energy, Ltd., stated, "Genie finished a strong year with record fourth quarter and full-year revenue. After reducing our retail customer exposure in 2022, which led to incredible but unsustainable profitability, we returned to customer acquisition mode in 2023, growing both RCEs and meters by over 30%. Through our portfolio management moves we made in 2022 and the customer growth in 2023, we increased our baseline Adjusted EBITDA from the $25 to $30 million level we generated just a few years ago to the $40 to $50 million level."
Stein continued, "The Company's strong 2023 performance resulted from the measures we took in 2022 and 2023 to re-position the Company, and we expect that 2023's key trends will help us to deliver outstanding results in 2024. Our initial expectation is for Adjusted EBITDA to be within our new baseline range of $40 to $50 million, providing sufficient cash generation to continue building our cash reserves while investing judiciously in growth opportunities and continuing to pay a dividend."
"For GRE, we are likely to continue to grow our customer base and generate Adjusted EBITDA above historical norms," Stein said
As of December 31, 2023, Genie Energy reported cash and cash equivalents, short and long-term restricted cash, and marketable equity securities of $163.4 million, an increase from $105.1 million at December 31, 2022 and from $143.8 million at September 30, 2023.
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March 11, 2024
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Copyright 2010-23 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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