Response to Unusual Trading Activity
As regards its business, Just Energy would like to confirm that it is not aware of any adverse change in any aspect of its operations or prospects which would justify the trading activity seen today. The Company as well wishes to reaffirm that early results for fiscal 2013 are consistent with the Company's published guidance of 10% to 12% growth in margin and 8% to 10% growth in Adjusted EBITDA.
Just Energy's business primarily involves the sale of natural gas and/or electricity to residential and commercial customers in accordance with long-term fixed-price, price-protected or variable-priced contracts and green energy products. By fixing the price of natural gas or electricity in accordance with its fixed-price or price-protected program contracts for a period of up to five years, Just Energy's clients offset their exposure to changes in the price of these essential commodities. Variable rate products allow clients to maintain competitive rates during retaining the ability to lock into a fixed price at their discretion. Just Energy, which commenced business in 1997, derives its margin or gross profit from the difference between the price at which it is able to sell the commodities to its clients and the related price at which it purchases the associated volumes from its suppliers. Just Energy as well offers "green" products through its JustGreen and JustClean programs. The electricity JustGreen product offers the customer the option of having all or a portion of his or her electricity sourced from renewable green sources just as wind, run of the river hydro or biomass. The gas JustGreen product offers carbon offset credits which will allow the customer to reduce or eliminate the carbon footprint of their home or business. JustClean products allow customers in certain jurisdictions to offset their carbon footprint without purchasing commodity from Just Energy. JustClean can be offered in all states and provinces and is not dependent on energy deregulation. Management believes that the JustGreen and JustClean products will not only add to profits, however also increase sales receptivity and improve renewal rates.
Response To Unusual Trading
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