Chesapeake Utilities Corp. reported net income for the quarter ended September 30 at $5.6 million, compared to $5.5 million for the same quarter of 2018.
Earnings came in slightly above forecasts at the Dover-based company.
The Company’s income from continuing operations for the quarter ended September 30, 2019 was $6.2 million, compared to $6.1 million for the same quarter of 2018.
The company is selling off its natural gas marketing operations (PESCO), with those holdings listed as discontinued operations
Higher earnings for the third quarter primarily reflect increased gross margin from recently completed and ongoing pipeline expansion projects, growth in the natural gas distribution operations and higher retail propane margins per gallon. The increases were largely offset by an increase in operating expenses and higher interest expense associated with financing the company’s expansion projects.
For the nine months ended September 30, 2019, the Company reported income from continuing operations of $44.0 million. This represents an increase of $4.9 million compared to the same period in 2018.
“For the first nine months of 2019, we have delivered strong financial performance largely driven by new pipeline expansions, organic growth, key regulatory initiatives and contributions from the Marlin Gas Transport and Ohl acquisitions,” stated Jeffrey Householder, CEO of Chesapeake Utilities Corporation. “As previously disclosed, as part of our ongoing strategic planning process, we decided to exit the natural gas marketing business and announced the sale of the PESCO assets. These actions will improve our earnings outlook, reduce the volatility of future earnings and recover our investment in the business. While the exit of any business is never easy, the same conviction, drive, and determination to do what is right for the Company and our constituents guided our decision and remains at the forefront of each and every employee. I am proud of our employees who are driving the growth of the Company in so many different ways.”
The company is not related to Chesapeake Energy, a natural gas producer that is facing financial challenges.
Chesapeake is a natural gas utility with pipeline holdings and operations on the Delmarva Peninsula, and Florida. It also has propane distribution operations, operates a gas gathering company in Ohio and owns a small electric utility in Florida.
