Please ensure Javascript is enabled for purposes of website accessibility

Here's Why Just Energy Group Stock Dropped Today

By Howard Smith - Feb 16, 2021 at 1:35PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Canadian-based electricity and natural gas retailer had to delay financial filings due to impacts from the severe winter storm in Texas.

What happened

Shares in electricity and natural gas retailer Just Energy Group (JE 11.77%) were down 15% as of 1:25 p.m. EST Tuesday. The Canadian company also services 10 U.S. states including Texas, and the energy sector disruption caused by a severe winter storm and freezing temperatures has directly impacted the company.

So what

Just Energy announced today that due to the storm-related disruptions, it will need to delay filing financial statements as well as other required reporting documents that were due Tuesday, Feb. 16. The company also said it had established a trading blackout of company shares for its directors and officers until the required documents are filed. 

Just Energy said the spike in demand and rolling blackouts in Texas have caused the company "to have to balance power supply at very high clearing prices" through the Texas independent power system operator, Electric Reliability Council of Texas (ERCOT). 

utility trucks doing repairs during winter storm

Image source: Getty Images.

Now what

Just Energy said the weather event "may result in a positive or negative financial impact to the company, which could be substantial." Investors appear to believe the impact will be negative as it has to purchase power at temporarily high rates to fulfill its customer obligations. 

The company said it is now assessing the financial impacts, and cannot finalize its reporting documents until it can reasonably estimate how it will affect its financial condition. Investors today aren't waiting to find out, as it seems more likely to be negative news that will result from the assessment. 

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Just Energy Group Inc. Stock Quote
Just Energy Group Inc.
JE
$0.19 (11.77%) $0.02

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
344%
 
S&P 500 Returns
120%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/28/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.