Genie Energy(US:GNE)2024-11-07 18:53Revenue Performance - Genie Retail Energy's revenues represented approximately 94.5% and 94.6% of consolidated revenues for the three and nine months ended September 30, 2024, respectively, compared to 96.2% for both periods in 2023[179]. - Total revenues for Q3 2024 were $105,800,000, down 12.1% from $120,313,000 in Q3 2023[193]. - Genie Renewables' revenues increased by 29.2% in Q3 2024, reaching $6.117 million, compared to $4.736 million in Q3 2023[217]. Customer Metrics - Customer A represented 16.0% of consolidated net trade receivables as of September 30, 2024, down from 21.4% at December 31, 2023[185]. - Customer A accounted for 20.9% of revenues for the three months ended September 30, 2024, compared to 24.1% for the same period in 2023[186]. - The number of electricity customers served increased to 311,000 as of September 30, 2024, up from 304,000 a year earlier[199]. - Total meters served increased to 399,000 as of September 30, 2024, reflecting a significant aggregation deal initiated in September 2024[201]. Profitability and Margins - Gross profit for Q3 2024 was $35,772,000, a decrease of 12.4% from $40,829,000 in Q3 2023[193]. - Gross margin percentage for electricity decreased to 33.4% in Q3 2024 from 34.1% in Q3 2023, while natural gas gross margin increased to 40.7% from 33.3%[207]. - Total gross margin percentage for the company decreased slightly to 33.8% in Q3 2024 from 33.9% in Q3 2023[207]. Costs and Expenses - Cost of revenues for Q3 2024 was $70,028,000, down 11.9% from $79,484,000 in Q3 2023[205]. - Selling, general and administrative expenses increased by 10.1% in Q3 2024 compared to Q3 2023, primarily due to higher marketing and customer acquisition costs[211]. - The average unit cost of electricity increased by 2.0% in the three months ended September 30, 2024, compared to the same period in 2023, due to higher wholesale prices[207]. Cash Flow and Capital Expenditures - Cash flows from operating activities for the three months ended September 30, 2024, were $49,174,000, compared to $32,561,000 in the same period in 2023[238]. - Capital expenditures increased to $4,000,000 for the nine months ended September 30, 2024, compared to $0.9 million in the same period in 2023, primarily for solar project construction[247]. - The company expects total capital expenditures for the twelve months ending December 31, 2024, to be between $6.0 million and $10.0 million, mainly related to solar projects[247]. Net Income and Losses - Net income attributable to Genie Energy Ltd. for the three months ended September 30, 2024, was $10,199,000, down 29.5% from $14,459,000 in the same period in 2023[229]. - The net loss from discontinued operations of Lumo Finland and Lumo Sweden was minimal at $0.3 million for the three months ended September 30, 2024, and $0.4 million for the nine months ended September 30, 2024[171]. - The net loss from discontinued operations for the three months ended September 30, 2024, was primarily related to foreign exchange differences in Lumo Sweden[236]. Shareholder Activities - Dividends paid to stockholders for Class A and Class B common stock totaled $6.2 million in the nine months ended September 30, 2024, compared to $3.9 million in the same period of 2023, reflecting a 59.0% increase[258]. - The company repurchased 492,032 shares of Class B common stock for an aggregate amount of $0.0 million in the nine months ended September 30, 2024, with 4.2 million shares remaining available for repurchase[261]. - The company redeemed 748,064 shares of Preferred Stock for an aggregate amount of $6.5 million on June 16, 2023, with no shares of Preferred Stock outstanding thereafter[264]. Risk Management - The company has adopted a hedging policy to mitigate the volatility of electricity and natural gas prices, primarily through put and call options and swaps[270]. - Losses from derivative instruments amounted to $6.2 million and $20.1 million in the three and nine months ended September 30, 2024, respectively, compared to losses of $4.5 million and $21.6 million in the same periods of 2023[270].