- Third quarter earnings per share increased to $0.42 from $0.29 for the third quarter of 2016
- Continued growth across the Company’s business segments drove a $4.1 million increase in operating income during the quarter
- New higher rates implemented on August 1, 2017, for Eastern Shore Natural Gas
- FERC approved the construction of facilities for the 2017 Expansion Project, which is expected to be in service in the second quarter of 2018
- Delmarva and Florida propane operating income rose sharply due to growth in retail and wholesale sales volumes and effective supply management that improved retail and wholesale margins
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, 2017 was $6.8 million, compared to $4.4 million for the same quarter of 2016. Earnings per share (“EPS”) for the quarter ended September 30, 2017 were $0.42 per share, compared to $0.29 per share for the same quarter of 2016. The increase in net income reflected margin growth across business units for both the Regulated Energy and Unregulated Energy segments, as well as lower operating and maintenance expenses for the quarter.
For the nine months ended September 30, 2017, the Company reported net income of $32.0 million, or $1.96 per share. This represents a decrease of $789,000, or $0.18 per share, compared to the same period in 2016. Higher margins from the Eight Flags Energy, LLC (“Eight Flags”) combined heat and power (“CHP”) plant, Peninsula Energy Services Company, Inc. (“PESCO”), and Aspire Energy of Ohio, LLC (“Aspire Energy”), new services and customer growth in the natural gas transmission and distribution operations in Florida and on the Delmarva Peninsula, and new rates for Eastern Shore Natural Gas Company (“Eastern Shore”) offset the increase in higher expenses to generate and support growth and the impact of warmer weather. An increase in outstanding shares as a result of the equity issuance in September 2016 lowered earnings per share by approximately $0.12 per share for the nine months ended September 30, 2017.
“Our solid results for the third quarter reflect the diverse sources of new gross margin throughout our Company,” stated Michael P. McMasters, President and Chief Executive Officer. “Recently completed growth projects are adding value for our stockholders. In the near term, we will commence construction of Eastern Shore’s largest ever expansion project, expected to be completed in early 2018, as well other projects that will cultivate future growth,” he added. “Investments in system expansion, acquisitions, new service offerings and unique projects like Eight Flags, enhance the continued growth in customers and deliveries in our natural gas distribution and transmission businesses. Our employees continue to excel in identifying new opportunities for growth, and profitably managing current growth. We are also maintaining operating efficiency while providing safe, reliable service to our customers,” he concluded.« Return to Newsroom