Chesapeake Utilities Corp., Dover, reported a 39-percent increase in net income to $14.9 million for the first quarter of 2013 from $10.7 million for the same quarter in 2012.
Chesapeake provides natural gas service south of the C&D Canal in Delaware and recently moved into Cecil County, Md.
“We begin 2013 with strong first quarter financial results, which reflect colder temperatures coupled with additional gross margin generated from natural gas expansions completed in 2012 and sustained propane retail prices from the fourth quarter of 2012,” said Michael P. McMasters, CEO of Chesapeake Utilities Corporation. “We look forward to more growth in 2013, both in our natural gas and propane distribution businesses, resulting from acquisitions and implementing new programs in Delaware and Maryland that facilitate expansion of our services,”
McMasters added. “In April, we reached a settlement regarding our regulatory filing for the purchase of the operating assets of Eastern Shore Gas Company and its affiliates in Maryland. We also made progress towards resolving our regulated filing for our proposed natural gas expansion service offerings in Delaware. Decisions in these cases by the Maryland and Delaware Public Service Commissions, respectively, are expected in mid-2013. These service offerings will support further expansion of our natural gas service to meet the energy needs of residents and businesses in Worcester County, Maryland and southeastern Sussex County, Delaware.”
Gross margin increased by $8.4 million, or 17 percent, in the first quarter of 2013, compared to the same quarter in 2012. Approximately $3.2 million of the gross margin increase was the result of colder weather during the first quarter of 2013 on the Delmarva Peninsula and in Florida, compared to the same quarter in 2012. Click on the link below, for the full Chesapeake report: