What happened
Shares in electricity and natural gas retailer Just Energy Group (JE) 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).
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.
