Canada’s Just Energy Group Inc. lost about $250 million from the recent Texas energy crisis.
Canadian retail energy provider Just Energy Group Inc. is the latest company to emerge as a big loser from the recent Texas energy crisis, revealing that it lost about $250 million and may have trouble continuing as a going concern.
The company said in a statement Monday that it can’t finalize its fourth-quarter earnings results while it reviews the impact of last week’s freezing weather in the U.S.
“The financial impact could change as additional information becomes available,” it said in the statement.
“Accordingly, the financial impact of the Weather Event on the Company once known, could be materially adverse to the Company’s liquidity and its ability to continue as a going concern.”
Extreme gyrations in regional U.S. gas and electricity prices because of the cold weather in Texas have affected the finances of other companies as well. Atmos Energy Corp., one of the largest independent suppliers of gas in the U.S., revealed Friday that it’s looking to raise cash after committing to spend as much as $3.5 billion to secure fuel during the freeze.
Just Energy, a retail energy provider specializing in electricity and natural gas, announced a recapitalization plan and a board shakeup last July, after concluding a strategic review to remain independent.
Amid high debt levels and looming debt maturities, the recapitalization plan included a new equity commitment of $100 million and converting $420 million of preferred shares and convertible debentures into new equity. The company said the move would reduce overall debt by about C$275 million.
In August it amended its recapitalization plan to issue $15 million of new notes to holders of its old subordinated convertible debentures.
Just Energy also replaced its chief executive officer in 2019, and multiple U.S. power generators reportedly bid for the company.