NEWARK, NJ - Genie Energy Ltd. (NYSE: GNE), a prominent retail energy provider, announced its fourth-quarter financial results, revealing a significant increase in revenue despite a dip in earnings per share (EPS).
The company reported a fourth-quarter EPS of $0.37, which was a decrease from the prior year's fourth-quarter EPS of $0.59. However, Genie Energy achieved a record revenue of $104.9 million for the quarter, marking a substantial 28.9% rise from the $81.4 million reported in the same quarter last year.
The company's financial performance was impacted by a one-time non-cash charge for a loss reserve at its newly established captive insurance operations, which resulted in a loss from operations of $34.2 million compared to income from operations of $15.5 million in the previous year. This charge also contributed to a 38.0% decrease in adjusted EBITDA to $11.4 million from $18.5 million year over year.
Despite the challenges, Genie Energy's CEO, Michael Stein, highlighted the company's strategic moves, including a shift back to customer acquisition, which led to over 30% growth in RCEs (Retail Customer Equivalents) and meters. Stein stated, "Genie finished a strong year with record fourth quarter and full-year revenue." He also emphasized the company's progress in its Genie Renewables division and the strong performance of its third-party energy and renewables services businesses.
Following the earnings release, Genie Energy's stock saw a modest increase of +0.92% in premarket trading, indicating a slightly positive investor reaction to the news.
Looking ahead, the company expects to maintain its adjusted EBITDA within the range of $40 to $50 million for 2024, reflecting confidence in its ability to generate sufficient cash while continuing to pay dividends and invest in growth opportunities. Genie Energy's focus remains on growing its customer base, advancing its solar project development pipeline, and expecting significant growth in recurring revenue from its Diversegy business.
Investors and analysts will be watching closely to see how Genie Energy's strategic initiatives unfold in the coming year as the company continues to navigate the dynamic energy market.
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