Dover, Delaware — Chesapeake Utilities Corporation (NYSE: CPK) (“Chesapeake Utilities” or the “Company”) today reported second quarter financial results. The Company’s net income for the quarter ended June 30, 2017 was $6.0 million, compared to $8.0 million in the same quarter of 2016. Earnings per share (“EPS”) for the quarter ended June 30, 2017 were $0.37 per share, compared to $0.52 for the same quarter of 2016. The decline in net income reflected expenses incurred and investments to generate and support growth as well as the impact of weather on the Delmarva Peninsula that was 41 percent warmer than the prior quarter. These factors were partially offset by higher margins from natural gas transmission and distribution operations in Florida and on the Delmarva Peninsula, the Eight Flags Energy LLC (“Eight Flags”) combined heat and power (“CHP”) plant and Aspire Energy of Ohio, LLC (“Aspire Energy”).
For the six months ended June 30, 2017, the Company reported net income of $25.2 million, or $1.54 per share. This represents a decrease of $3.2 million, or $0.31 per share, compared to the same period in 2016. Similar to the second quarter of 2017, the decline in net income for the first six months of 2017 principally reflected higher expenses incurred and investments to generate and support growth, as well as the impact of warmer weather. These factors were partially offset by higher margins from the Eight Flags CHP plant, natural gas transmission and distribution operations in Florida and on the Delmarva Peninsula, Aspire Energy, and the Company’s natural gas marketing operation, Peninsula Energy Services Company, Inc. (“PESCO”). An increase in outstanding shares as a result of the equity issuance in September 2016 lowered EPS by approximately $0.10 per share for the six months ended June 30, 2017.
“Growth in our businesses will drive our future earnings. We have continued to expand our internal capabilities to manage and cultivate growth, while aggressively pursuing opportunities that will position the Company for future growth,” stated Michael P. McMasters, President and Chief Executive Officer of Chesapeake Utilities Corporation. “Earnings growth and costs incurred to support business growth do not always move in tandem. Our results for the second quarter and year-to-date should be viewed in the context of the major growth projects and initiatives recently completed and those currently underway, in addition to the negative impact of warmer weather. Our employees have completed several significant projects in 2017 and are laying the groundwork to commence Eastern Shore Natural Gas Company’s (“Eastern Shore”) largest ever expansion project in addition to several other key projects and initiatives that are also scheduled to go into service in 2018,” he added.Return to News >>