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Macquarie to profit off severe weather

Macquarie Group has increased its short-term guidance as demand rises for gas and power in Texas after severe weather conditions caused the collapse of its local electricity supply.

Macquarie expects its annual profit to increase by between 5% and 10% on the previous year as client demand has increased for its stores of energy.

Texas' independent power grid, which operates as the Electric Reliability Council of Texas, was unable to handle the freezing temperature and heightened demand for power.

"Macquarie's Commodities and Global Markets (CGM) business physically ships gas on the majority of major pipelines across the US and overtime has built capacity to support clients by delivering power and physical commodities to help them meet the unexpected needs of their customers," Macquarie said in a statement.

Macquarie previously announced on February 9 that it expected its FY21 result to be slightly down on the previous year.

However, Macquarie said the short-term outlook is subject to uncertain factors including the duration of COVID-19, the speed of global economic recovery and the geographic composition of income.

As a result, the group maintains a conservative approach to capital, funding and liquidity so it is able to respond to any of these factors.

The upgraded outlook comes as Macquarie Infrastructure and Real Assets (MIRA) made an offer to acquire telecommunications company Vocus earlier in the month.

MIRA offered to acquire Vocus for $5.50 per share however, the offer is conditional on the completion of due diligence.

Read more: Macquarie GroupVocusMIRAElectric Reliability Council of TexasCGM
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