The following is a summary of the Genie Energy Ltd. (GNE) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Genie Energy reported a strong financial performance in Q3 with $14 million in adjusted EBITDA and a total of $37 million in adjusted EBITDA for the first nine months of 2024.

• Total Q3 revenue was $111.9 million, although there was a decrease of 10.5% due to lower kilowatt hours sold, primarily from GRE impacting revenue with a decrease of 12.1% to $105.8 million.

• Consolidated gross profit was $37.9 million with a gross margin improvement to 33.9%.

• GRE's gross margin slightly decreased by 10 basis points to 33.8%, while GREW's gross profit jumped considerably due to high margin revenues.

Business Progress:

• Genie Energy expanded its operational footprint by entering the California natural gas market, targeting residential customers, expected to start serving in Q4.

• The GRE division reported approximately 36,000 net new meters, growing to 399,000 meters served, a 3.5% increase.

• Genie Energy's renewable energy segment, GREW, is repositioning to focus on utility-scale projects, moving away from commercial and industrial, which doubled revenue compared to the previous year.

Opportunities:

• Expanded into California, now serving electricity and/or natural gas in 19 states plus Washington, D.C., which diversifies portfolio and mitigates regional energy market volatility.

• Continued focus and growth in utility-scale solar projects enhances efficiency and profit generation with significant contributions expected from operational arrays.

Risks:

• Market volatility affecting kilowatt-hour sales led to a revenue decline in GRE's segment.

• Higher SG&A expenses due to aggressive customer acquisition, despite decreasing consumption, reflecting increased operational costs.

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