Chesapeake Utilities Corporation reported net income for the second quarter ended June 30, was $6.4 million, compared to $6 million for the same quarter in 2017.
For the six months ended June 30, the company reported net income of $33.2 million, or $2.03 per share. This represents an increase of $8.1 million compared to the same period in 2017.
The second quarter of 2018 and year-to-date earnings per share reflect the impact of a 9-cent a share charge for non-recurring separation expenses associated with a former executive.
Higher quarterly and year-to-date earnings reflect the benefits of investments in system expansion and reliability and continued growth in regulated natural gas and electric operations, as well as enhanced profitability and growth from the company’s propane operations and the benefit of the lower effective tax rate from tax cuts on unregulated earnngs.
The results also reflect more normal weather during the quarter and six months. Weather during the first half of 2018 was 1.8 percent warmer than normal compared to 22.2 percent warmer than normal during the first six months of 2017.
“Results for the second quarter and year-to-date highlight the strong leadership team we have built at Chesapeake Utilities and the dedication of our employees to achieving our earnings, capital investment and return targets,” stated Michael P. McMasters, CEO. “Our business units continue to execute on our growth and expansion initiatives including the completion of the Northwest Florida Pipeline expansion project, significant progress on the construction of Eastern Shore’s largest ever expansion project, as well as several other projects that support attainment of our strategic growth targets in future years.”
Revenues for the second quarter was $136.7 million, up to $125.1 million during the same period a year ago. Revenues for the first half were $376 million up from $310 million.
Other highlights include:
- The Company has paid or reserved a total of $5.4 million in refunds to regulated energy customers from the pass-through of lower Federal income taxes
- The Northwest Florida Pipeline expansion project was completed and placed into service during the quarter
- The 2018 capital spending forecast has been increased from $181.6 million to $216.4 million based on additional profitable opportunities identified across the company.
Dover-based Chesapeake Utilities has regulated natural gas utilities on Delmarva and in Florida, a small electric utility in Florida, natural gas pipelines, a propane business, and an Ohio unit that gathers gas from wells.