Chesapeake Utilities Corporation, Dover, reported sharply higher income in the first quarter.
The company’s net income for the quarter ended March 31, 2018 was $26.9 million, compared to $19.1 million for the same quarter of 2017. Revenues were more than $239 million. Earnings came in above estimates.
The higher net income and EPS reflected robust performance and results l throughout the company’s businesses.
Higher earnings for the first quarter of 2018 reflect continued growth in the regulated natural gas and electric operations, pipeline expansion and favorable regulatory initiatives; Increased profitability and growth from propane delivery operations and Aspire Energy of Ohio, LLC (“Aspire Energy”) and the positive impact of the lower effective tax rate from the Tax Cuts and Jobs Act.
Aspire gathers gas from wells in Ohio wells for use by customers
The company estimates that customers of its regulated businesses will receive $3.2 million from lower tax rates from the Tax Cuts and Jobs Act.
The results also reflect a return to more normal weather during the first quarter of 2018, compared to weather that was 20.9 percent warmer than normal during the first quarter of 2017.
“We begin 2018 with strong first quarter financial results, which reflect the strength of our natural gas and propane operations under more normal weather conditions and the superior performance of the company’s investments and growth-oriented initiatives led by our dedicated team,” stated Michael P. McMasters, President and Chief Executive Officer of Chesapeake Utilities Corporation. “We look forward to continued growth in our regulated and unregulated energy segments this year and in future years,” Mr. McMasters added.
McMasters continued, “During 2018, we are focused on completing the construction of Eastern Shore Natural Gas Company’s (“Eastern Shore”) largest ever expansion project as well as other projects that are critical to meeting our growth targets in future years,” he added. “Our energized employees continue to excel in identifying new growth opportunities and profitably managing current growth while maintaining operating efficiency and providing safe, reliable service to our customers.”
