Chesapeake Utilities Corporation reported lower first quarter earnings as warmer temperatures offset strong results elsewhere.
The Dover-based company’s net income for the quarter ended March was $20.4 million, down $742,000 from the same period a year ago.
The company estimates its territory estimated that temperatures were up 26 percent from a year earlier, reducing net income by $4 million.
That offset the higher gross margin from the performance of Aspire Energy of Ohio, LLC, a gas gathering company, and natural gas services growth that was unaffected by weather.
“Despite the significantly warmer weather, net income for the first quarter was only 3.5 percent lower than the same quarter in 2015, thanks to the continued growth and diversity of our businesses,” stated Michael P. McMasters, CEO. “The execution of our growth strategy and the diversity of our business portfolio have created natural hedges against adverse weather impacts.”
“We are also making significant progress on several large growth projects, including the combined heat and power plant in Florida and new natural gas transmission services on the Delmarva Peninsula, which will begin to come on line later this year,” McMasters stated.
Chesapeake’s service territory includes the Delmarva Peninsula and parts of Florida.
