Genie Energy buys partner’s interest in UK’s Orbit Energy
Genie Energy, a global provider of energy services, has bought the outstanding 24 percent interest of its retail energy supply joint venture operating in the UK from its former joint venture partner.
The venture, which operates under the trade name of Orbit Energy, provides electricity and natural gas services to more than 100,000 metres in the UK’s deregulated retail energy market. The purchase price was approximately £1.30 million, while the net of repayment of outstanding loans meant that Genie paid approximately £1 million.
"Since its launch two years ago, our Orbit Energy initiative has validated our approach to the retail energy supply business in the UK and proven the potential for long term growth in this exciting market," says Michael Stein, Genie Energy's Chief Executive Officer. "With the purchase of the outstanding interest in Orbit, we continue to expand our international portfolio of rapidly growing retail energy suppliers."
Following the transaction, Orbit Energy's operating company is a wholly owned subsidiary of Genie Energy. Genie will consolidate Orbit's results in its financial reporting under the Genie Retail Energy International (GREI) Segment, according to a statement.
"Genie's investment provides a streamlined management structure that will help us to respond nimbly as we continue to execute on our growth strategy. We will continue to provide the outstanding service and value that our customers here in the UK expect," says Gail Parker, CEO of Orbit Energy.
Genies financial results for Q2 2020 shows that Global RCEs served increased by 64,000 (18 percent) year over year and 20,000 (5 percent) sequentially to 421,000. Global meters served increased by 88,000 (20 percent) year over year and 4,000 (1 percent) sequentially to 536,000.
Meanwhile, Genie Retail Energy, the US retail energy provider business, recorded a 26 percent per-meter electricity consumption, figures show.
Consolidated revenue was up by 24.7 percent to £58.4 million from £46.8 million in 2019., driven by increased electricity consumption, the financial results say.
"Genie Energy delivered strong financial and operational results, much improved from the difficult year ago quarter. We again expanded our global customer base led by growth in our overseas markets and reported the highest level of Adjusted EBITDA1 for any second quarter in our history,” Stein was quoted as saying at the time.
"Given our continued favourable outlook and strong cash generation in recent quarters and after increasing our quarterly dividend last quarter, we resumed repurchasing shares in the second quarter.”