Just Energy Announces Sale of Assets in Georgia and the Closing of the Sale of the Irish Business
December 31 2019 - 7:00AM
Just Energy Group Inc. (“Just Energy” or “the Company”) (TSX:JE)
(NYSE:JE) announces that it has sold all of its customer contracts
and natural gas in storage in the State of Georgia to Infinite
Energy for approximately US$3.4 million (approximately C$4.4
million), subject to customary adjustments. The Georgia market has
limited growth possibility and was sub-scale for Just Energy. In
addition, the Company has closed the previously announced sale of
its Irish operations to Flogas Natural Gas Limited for
approximately €700 thousand (approximately C$1.0 million), subject
to customary adjustments.
“The sale of our Georgia based assets and operations in Ireland,
in addition to the earlier sale of our UK operations, are key
milestones in our strategy to refine our focus,” said Scott Gahn,
President and Chief Executive Officer of Just Energy. “These
changes to our business structure allow us to concentrate on our
stronger growth and higher-margin operations in North America,
while reducing costs.”
Commitment to lower cost structureIn late
fiscal 2019 and during fiscal 2020, Just Energy identified several
opportunities to improve efficiency and profitability. The Company
has been implementing these initiatives, including eliminating
low-value activities, businesses and overhead, optimizing spending,
improving efficiency in its customer care group and refining the
quality of its customer base. The impact of these improvements is
beginning to yield results and the Company estimates that these
improvements will drive savings of approximately C$60 million, net
of costs associated with severance and Just Energy’s strategic
review process.
Strategic review process The strategic review
process initiated in early June is ongoing. The Board’s goal for
the strategic review is to unlock value for Just
Energy and all its stakeholders with respect to its core North
American business. Just Energy has not set a specific
timeframe for the conclusion of the strategic review. The Company
will provide an update when the Board has approved a specific course
of action.
About Just Energy Group Inc.Just
Energy is a consumer company focused on essential needs,
including electricity and natural gas commodities; health and
well-being, such as water quality and filtration devices; and
utility conservation, bringing energy efficient solutions and
renewable energy options to consumers. Currently operating
in the United States and Canada, Just
Energy serves residential and commercial customers. Just
Energy is the parent company of Amigo Energy, EdgePower
Inc., Filter Group Inc., Hudson Energy, Interactive
Energy Group, Just Energy Advanced Solutions, Tara Energy, and
terrapass. Visit https://investors.justenergy.com/ to
learn more. Also, find us on Facebook and follow us
on Twitter.
FORWARD-LOOKING STATEMENTS This press release
may contain forward-looking statements including statements
regarding the Company’s financial outlook. Forward-looking
statements in this press release include, but are not limited to,
statements and information regarding the Company’s ability to
improve its business by boosting efficiency and lowering costs, the
success of the Company’s cost reductions and optimization efforts,
the ability of the Company to reduce expenses and the quantum of
such reductions and the impact thereof on the Company’s current
fiscal year, the Company’s ability to identify further
opportunities to improve its cost structure, and the results of the
strategic review process. These statements are based on current
expectations and assumptions that are believed to be reasonable,
but that involve a number of risks and uncertainties which could
cause actual results to differ from those anticipated. These risks
include, but are not limited to, general economic and market
conditions, weather conditions, levels of customer natural gas and
electricity consumption, rates of customer additions and renewals,
rates of customer attrition, fluctuations in natural gas and
electricity prices, changes in regulatory regimes, results of
litigation and decisions by regulatory authorities, competition and
dependence on certain suppliers. Additional information on these
and other factors that could affect Just
Energy's operations, financial results or dividend levels are
included in Just Energy's annual information form and
other reports on file with Canadian securities regulatory
authorities which can be accessed through the SEDAR website
at www.sedar.com, on the U.S. Securities Exchange
Commission’s website at www.sec.gov or through Just
Energy's website at www.justenergygroup.com. All of the
forward-looking statements in this press release are qualified by
the foregoing cautionary statements. Neither the Toronto Stock
Exchange nor the New York Stock Exchange has
approved nor disapproved of the information contained herein.
FOR FURTHER INFORMATION PLEASE CONTACT:
Jim Brown Chief Financial Officer Phone: (713) 544-8191
jbrown@justenergy.com
or
Investors Michael Cummings Investor Relations Phone: (617)
982-0475 michael.cummings@alpha-ir.com
Media Boyd Erman Longview Communications Phone: 416-523-5885
berman@longviewcomms.ca
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