- Third quarter net income totaled $4.4 million or $0.29 per share
- Year-to-date net income totaled $32.8 million or $2.14 per share
- Strong growth in the natural gas distribution and transmission businesses continues
- Eight Flags Energy Combined Heat & Power project is now fully operational and generating both regulated and non-regulated energy operating income
- The Company netted $57.3 million from the sale of common stock in September 2016
Dover, Delaware – Chesapeake Utilities Corporation (NYSE: CPK) (“Chesapeake Utilities” or the “Company”) today reported third quarter financial results. The Company’s net income for the quarter ended September 30, 2016 was $4.4 million, compared to $5.1 million in the same quarter of 2015. The decrease was principally due to fixed pipeline and storage costs associated with natural gas supply contracts where a significant portion of the sales volume will occur during the winter months; increased deliveries and imbalance positions that favorably impacted Aspire Energy in 2015, which are non-recurring; and lower retail propane margins per gallon on the Delmarva Peninsula, as expected. Earnings per share for the quarter ended September 30, 2016 were $0.29 per share, compared to $0.33 for the same quarter of 2015.
For the nine months ended September 30, 2016, the Company reported net income of $32.8 million, an increase of $291,000 over the first nine months of 2015. Earnings per share were $2.14 for the first nine months of 2016, compared to $2.16 per share for the same period in 2015. Year-to-date, higher earnings from growth in the Company’s natural gas transmission and distribution businesses, Aspire Energy of Ohio, LLC (“Aspire Energy”) and the Combined Heat & Power (“CHP”) plant constructed by the Company’s subsidiary, Eight Flags Energy, LLC (“Eight Flags”), offset the negative effect of warmer weather largely during the first quarter of 2016. The warmer weather reduced year-to-date earnings per share by $0.31 compared to the same period in 2015.
“Third quarter results of operations met our expectations and demonstrate the success of our employees in cultivating growth in the areas we serve. The Eight Flags Energy project is now fully operational and contributed more than $2.0 million in new margin during the quarter.” stated Michael P. McMasters, President and Chief Executive Officer of Chesapeake Utilities Corporation. “We also completed an equity offering which provides us with the capital we need while maintaining our strong financial position. Looking forward we are positioned to continue executing on our projects and delivering value to our customers and shareholders,” Mr. McMasters added.
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