Scott Blake's questions to Genie Energy (GNE) leadership • Q2 2025
Question
Scott Blake questioned the company's confidence in margin recovery, the significant impact of weather on margins despite hedging strategies, and the future viability and financial exposure of their solar projects following recent legislative changes.
Answer
The executive explained that margin pressure was due to unexpected hot weather impacting the small but significant unhedged portion of their energy load. They are confident margins will normalize as the season progresses and wholesale markets stabilize. Regarding the solar projects, they stated that very little capital is tied up in the paused early-stage projects, and they are currently re-evaluating the path forward for new developments without the previous tax incentives.