By Stephen Nakrosis
Genie Energy Ltd. said Thursday it was suspending its planned public offering and spinoff of Oriel Energy, its European retail energy supply business, "in light of the impacts of the extreme volatility in the United Kingdom's energy markets on the retail energy supply industry."
Chief Executive Michael Stein said turbulence in the U.K.'s wholesale energy markets, along with price caps, impacted the ability of independent energy suppliers to operate, including the company's Orbit energy subsidiary. "Accordingly, we are suspending the planned capital raise and spinoff of our European operations while we exit the U.K. market and work to ensure continuity of supply for our customers" he said, adding "our decision reflects our assessment of longer term challenges in the market."
The company said at June 30, Orbit served about 119,000 meters in the U.K., covering both electricity and natural gas customers.
"Since we will no longer be investing in new meter acquisition in the U.K., we expect that our decision will positively impact our bottom line in the coming quarters," Mr. Stein said.
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