NYSE$GNE

Genie Energy Ltd · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Genie Energy announced record gross margin, gross profit, and Adjusted EBITDA, with Genie Retail Energy achieving record operating profitability.

Genie Energy reported strong Q3 2021 results, driven by exceptional performance in both U.S. and Scandinavian energy supply businesses and robust customer demand in Genie Renewables. The company is withdrawing from the U.K. retail market due to structural market limitations.

  • GRE delivered record levels of gross profit, income from operations and Adjusted EBITDA for the quarter driven by strong margins in the retail book and mark-to-market increases.
  • Genie recorded a $1.9 million credit to the cost of sales reflecting expected reimbursement from the State of Texas for charges imposed by ERCOT during the severe winter storm in February 2021.
  • Operationally, GRE served 336,000 RCEs at September 30, 2021, a 2.0% increase sequentially and a 3.9% decrease year over year.
  • Genie Renewables reported a higher gross margin and improved overall results as it shifted to higher-margin solar projects.

Headline financials

Total Revenue

$113M

Previous: $96.3M+17.5%
EPS (adj)

$0.16

Previous: $0.24-33.3%
Capital Expenditures

-$158K

Previous: -$125K-26.4%
Free Cash Flow

-$2.44M

Previous: $6.6M-137.0%
Net Income

-$2.29M

Previous: $6.73M-134.0%
Operating Income

$6.87M

Previous: $8.49M-19.0%
Gross Profit

$42.4M

Previous: $27.3M+55.1%
Cash & Equivalents

$34M

Previous: $19.6M+73.8%
Total Assets

$194M

Previous: $149M+30.0%
Stock-Based Comp

$532K

Previous: $447K+19.0%

Revenue & EPS history

Genie Energy · Revenue · Quarterly

$113M

Q3 2021+17.5%vs Q3 2020
Beat estimate in 2 of 5 quarters(40%)
ActualEstimate

Revenue by segment

Genie Energy · $142M total across 2 segments · Q1 2026

  • Genie Retail Energy
    $135M
  • Genie Renewables
    $7.55M

Forward guidance

Genie is positioned to mitigate foreseeable volatility in wholesale energy prices through its risk-management program including hedging and forward commodity contract positioning. The company expects to generate robust margins from its retail supply businesses and reduce supply requirements by narrowing its customer acquisition program to higher margin customers.

Tailwinds

  • Genie is positioned to mitigate foreseeable volatility in wholesale energy prices through its risk-management program including hedging and forward commodity contract positioning.
  • Genie expects to generate robust margins from its retail supply businesses.
  • Genie expects to reduce supply requirements by narrowing its customer acquisition program to higher margin customers.
  • This strategy optimizes margins while dampening customer acquisition expense.
  • Management believes the Company is well positioned to deliver strong fourth quarter results.

Headwinds

  • Planned orderly withdrawal from U.K. retail market underway.
  • Orbit Energy’s loss from operations was $16.4 million for the quarter, including a $6.7 million ($0.26 cents per share) impairment of assets
  • GRE served 336,000 RCEs at September 30, 2021, a 2.0% increase sequentially and a 3.9% decrease year over year.
  • In Scandanavia, GREI curtailed meter acquisition in a rising commodity price environment, leading to increased profitability and a decrease in meters served during the quarter.
  • Genie has suspended the planned spin-off of its international operations in the U.K. and Scandinavia following the deterioration of the U.K. energy market

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2021

Historical avgQ3 2021

+0.4%

Avg return

Earnings day

+3.5%

Avg return

5 days after

+5.9%

Avg return

30 days after

56%

35 / 62 earnings

Positive

+17.1%

Q1 2016

Best reaction

-36.6%

Q2 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.8%+3.8%+8.5%
Q4 2025-0.9%+0.6%+0.9%
Q3 2025+2.2%+1.3%-3.9%
Q2 2025-19.3%-19.8%-24.2%
Q1 2025+3.4%+8.6%+48.5%
Q4 2024-4.3%-4.4%+1.7%
Q3 2024+8.3%+5.4%-7.5%
Q2 2024+1.0%+4.1%+9.4%
Q1 2024-3.5%-3.3%-7.2%
Q4 2023-16.0%-13.5%-20.6%
Q3 2023+5.4%+19.6%+24.1%
Q2 2023+8.9%+12.4%+9.7%
Q1 2023-7.6%+3.6%-7.4%
Q4 2022-17.4%-8.7%+39.1%
Q3 2022-11.6%-18.7%-2.6%
Q2 2022+13.0%+13.2%+6.1%
Q1 2022-1.1%+17.8%+38.4%
Q4 2021+9.5%+13.0%+10.9%
Q3 2021+11.1%+7.8%+3.6%
Q2 2021+1.5%+0.7%+11.4%
Q1 2021+1.6%+7.1%+8.0%
Q4 2020-5.5%-6.3%-15.6%
Q3 2020+5.6%+7.7%-4.7%
Q2 2020+7.7%+8.1%+2.1%
Q1 2020+8.9%+8.6%+16.6%
Q4 2019+0.3%+12.4%+35.5%
Q3 2019+15.7%+19.8%+22.3%
Q2 2019-36.6%-31.2%-32.4%
Q1 2019+4.0%+11.5%+9.6%
Q4 2018-4.0%-3.0%-2.5%
Q3 2018+13.0%+25.2%+29.9%
Q2 2018-0.6%+0.4%+0.7%
Q1 2018+13.7%+8.9%+19.5%
Q4 2017+6.4%+6.4%-14.9%
Q3 2017+4.9%+5.3%-18.4%
Q2 2017-4.9%-5.5%-8.3%
Q1 2017-4.4%+1.7%+5.3%
Q4 2016+11.3%+10.0%+34.5%
Q3 2016-0.6%-1.0%+8.8%
Q2 2016+6.8%+12.1%-1.0%
Q1 2016+17.1%
Q4 2015-10.6%
Q3 2015+9.0%
Q2 2015-9.1%
Q1 2015+10.4%
Q4 2014-2.4%
Q3 2014-5.3%
Q2 2014+5.6%
Q1 2014+3.2%
Q4 2013-8.9%
Q3 2013-3.5%
Q2 2013-6.8%
Q1 2013-16.8%
Q2 2012+4.4%
Q2 2011+4.4%
Q4 2010+4.4%
Q4 2012-0.6%
Q3 2012-2.7%
Q3 2011-1.1%
Q1 2012+1.4%
Q1 2011+2.1%
Q4 2011+2.1%

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