Dover-based Chesapeake Utilities Corporation announced higher earnings in 2016, despite a warm winter.
The Company’s net income for the year ended December 31, was $ 44.7 million, an increase of $3.5 million from 2015.
The growth in net income occurred despite the negative impact of warmer temperatures in 2016, primarily during the first quarter, and trading losses from Xeron, a wholesale propane marketer.
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The higher earnings resulted from growth in the Company’s natural gas transmission and distribution businesses, increased earnings from Aspire Energy of Ohio, LLC income generated from the Combined Heat & Power (“CHP”) plant and increased gross margin generated by additional investments in the Florida Gas Reliability Infrastructure Program.
Aspire gathers natural gas at the wellhead and the CHP plant provides heat and electricity for an industrial plant in northern Florida.
Chesapeake also operates an electric utility in that area as well as natural gas operations in Florida and the Delmarva Peninsula.
For the fourth quarter of 2016, the company reported net income of $11.9 million, an increase of $3.2 million from the same quarter in 2015.
The increase was driven by the same factors that drove higher earnings for the year as well as higher propane gas sales in the Company’s Delmarva Peninsula propane distribution business.
“Our performance during 2016 was exceptional as our earnings per share set a record for the tenth consecutive year, surpassing 2015 by 5.1 percent, despite the warmer winter weather in the first quarter,” stated Michael P. McMasters, CEO. “This accomplishment flows from the strategic investments we have made to propel diversified growth in our energy businesses. Our employees’ creative energy has produced this powerful growth; their hard work, service ethic and financial discipline have driven our ten years of success. We remain committed to the execution of our strategy in 2017,” added McMasters.
