Chesapeake Utilities Corporation, Dover, announced higher earnings for the year and the fourth quarter ended December 31, 2019.
Net income for 2019 was $65.2 million compared to $56.6 million, for 2018. Fourth quarter net income was $22.6 million compared to $17.8 million in 2018.
In the fourth quarter of 2019, the company completed the previously announced sales of the assets and contracts of its natural gas marketing subsidiary, Peninsula Energy Services Company, Inc. (PESCO) and recorded a pre-tax gain of $7.3 million.
Higher earnings for 2019 reflect results from Marlin Gas Transport, Inc., R. F. Ohl Fuel Oil, Inc. and Newark-based Boulden Inc., organic growth in the natural gas distribution operations and higher retail propane margins.
The company also retained tax savings from the federal tax cut in Florida gas operations and saw growth at Aspire Energy of Ohio, a company that gathers natural gas from wells.
“2019 was a remarkable year, whether measured by our record earnings and superior growth, the initiatives we completed, those we set into motion or by how effectively our employee team worked together to drive efficiency, increase collaboration and achieve continuous improvement across the organization,” stated Jeffry M. Householder, CEO. “When I stepped into the role of CEO at the beginning of 2019, I was energized by the company’s prospects and our employees’ commitment to our shareholders, customers and the communities we serve. My excitement grew over 2019 given the effort and accomplishments of our team. We reported record earnings on operating income that exceeded $100 million for the first time in our history, and compound annual growth in earnings has exceeded 8.5 percent for multiple trailing periods including the 10 years ended 2019. Strategically, we successfully and profitably exited the natural gas marketing business, completed seamless integrations of Marlin Gas Transport and Ohl, while acquiring Boulden and announcing the purchase of Elkton Gas – all while continuing to harvest organic growth, expanding our pipeline and distribution service capacity and ensuring safe, reliable and clean energy service to our customers. In recognition of our team’s success, we have updated our financial guidance and increased our expectations for earnings through 2022.”
Management is updating earnings guidance and is increasing the forecasted range for 2022 to $4.70 to $4.90 per share.
Chesapeake operates natural gas utilities on Delmarva and Florida. It also operates an electric utility in Florida.
