- Net income of $5.1 million, or $0.52 per share for the second quarter of 2012, an increase of $1.5 million, or $0.15 per share, compared to the same quarter in 2011
- Additional margins generated from natural gas expansions on the Delmarva Peninsula and in Florida added $1.0 million to net income, or $0.10 per share
Dover, Delaware — Chesapeake Utilities Corporation (NYSE: CPK) today announced financial results for the second quarter of 2012. The Company’s net income for the quarter ended June 30, 2012 was $5.1 million, or $0.52 per share. This represents an increase of $1.5 million, or $0.15 per share, compared to the same quarter in 2011, and quarter-over-quarter increases of 44 percent and 43 percent for net income and earnings per share, respectively.
On a year-to-date basis, the Company reported net income of $15.8 million, or $1.63 per share, for the six months ended June 30, 2012. This represents a decrease of $1.5 million in net income, or $0.16 per share, compared to the same period in 2011. Warmer temperatures during the first half of 2012 resulted in lower net income of $2.4 million, or $0.25 per share, compared to the same period in 2011.
“Our financial results for the second quarter of 2012 represent the strongest second quarter results in the Company’s history,” stated Michael P. McMasters, President and Chief Executive Officer of Chesapeake Utilities Corporation. “The tireless efforts by our employees to expand our energy footprint both on the Delmarva Peninsula and in Florida continue to generate growth and shareholder value. By aggressively promoting environmentally-friendly and cost effective natural gas, we have created value for customers and shareholders and are continuing to generate increased financial results. To further natural gas expansion, we recently filed an application with the Delaware Public Service Commission (“PSC”) to increase our natural gas service offerings in the southern part of the state. At the end of June, we also entered into an agreement to purchase the operating assets of The Eastern Shore Gas Company and its affiliates (collectively, “ESG”). Currently, ESG provides propane distribution service to approximately 11,000 customers through underground propane gas distribution systems and 500 customers through bulk propane delivery service. In conjunction with the purchase of these assets, we are evaluating potential opportunities to economically convert some of the underground propane distribution service to natural gas. We are in the process of developing programs to assist customers in the conversion process. Our unregulated businesses continue to develop growth opportunities through new services, products and programs. All these opportunities position us for another year of strong performance despite the challenge of warmer temperatures experienced so far this year.”
The Company’s operating income for the second quarter of 2012 was $10.5 million, an increase of $2.7 million, compared to the same quarter in 2011. Gross margin increased by $3.1 million, or eight percent, in the second quarter of 2012, compared to the same quarter in 2011. The regulated energy segment generated $2.8 million of this increase, due primarily to growth in the Company’s natural gas transmission and distribution operations. This included $1.1 million in additional gross margin, which was generated by transmission system expansions and new transmission services, and $632,000 in additional gross margin, which was generated by growth in residential, commer