NEWARK, N.J., Oct. 14, 2021 /PRNewswire/ -- Genie Energy Ltd
(NYSE: GNE, GNEPRA) announced today that it has suspended the
planned public offering and spin-off of its European retail energy
supply business, Oriel Energy, in light of the impacts of the
extreme volatility in the United
Kingdom's energy markets on the retail energy supply
industry.
"The turbulence in the United
Kingdom's wholesale energy markets in recent weeks combined
with the UK's price cap system has significantly impacted the
ability of independent energy suppliers, including our UK
subsidiary, Orbit Energy, to operate," said Michael Stein, Genie Energy's CEO.
"Accordingly, we are suspending the planned capital raise and
spin-off of our European operations while we exit the UK market and
work to ensure continuity of supply for our customers. While our
Orbit Energy subsidiary has a comprehensive program to manage
near-term exposure to commodity price volatility, our decision
reflects our assessment of longer term challenges in the
market."
Genie Energy's Orbit Energy subsidiary served approximately
119,000 meters in the UK at June 30,
2021 including both electricity and natural gas
customers.
"Since we will no longer be investing in new meter acquisition
in the UK, we expect that our decision will positively impact our
bottom line in the coming quarters. Elsewhere in our business, we
are excited by the opportunities ahead across our markets. We
continue to work to expand our Scandinavian and US retail customer
bases and accelerate the rapid growth of our domestic renewables
businesses," Mr. Stein added.
In this press release, all statements that are not purely
about historical facts, including, but not limited to, those in
which we use the words "believe," "anticipate," "expect," "plan,"
"intend," "estimate, "target" and similar expressions, are
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. While these
forward-looking statements represent our current judgment of what
may happen in the future, actual results may differ materially from
the results expressed or implied by these statements due to
numerous important factors, including, but not limited to, those
described in our most recent report on SEC Form 10-K (under the
headings "Risk Factors" and "Management's Discussion and Analysis
of Financial Condition and Results of Operations"), which may be
revised or supplemented in subsequent reports on SEC Forms 10-Q and
8-K. We are under no obligation, and expressly disclaim any
obligation, to update the forward-looking statements in this press
release, whether as a result of new information, future events or
otherwise.
ABOUT GENIE ENERGY LTD:
Genie Energy Ltd.
(NYSE: GNE, GNEPRA), is a global provider of energy services.
The Genie Retail Energy division supplies electricity, including
electricity from renewable resources, and natural gas to
residential and small business customers in the United States. The Genie Retail Energy
International division supplies customers in Europe and Asia. The Genie Energy
Services division includes Diversegy, a commercial and industrial
brokerage and consultative services company, and Genie Solar Energy
and Prism Solar, which design, supply and install commercial solar
solutions. For more information, visit Genie.com.
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SOURCE Genie Energy Ltd.