Macquarie, Texas and the complex business of electricity

The Australian financial services company has announced a profit guidance upgrade prompted by a win from its commodities business thanks to the crisis in Texas. It’s a bad look, but it illustrates both a complex and flawed market, and a bank with a great eye for a niche.

Macquarie Group found itself on Monday in the somewhat indelicate position of providing a bountiful profit-forecast upgrade prompted by the extreme weather that has left millions of Texans freezing in the dark.

Having guided two weeks earlier for a decline in group net profit in the year to March 31, Macquarie instead revised its guidance to a 5% to 10% increase, all thanks to a boost from the commodity business that could be as much as A$270 million ($210 million).

Thanks for your interest in Euromoney!
To unlock this article: