- Chesapeake Utilities Corporation, Dover, reported lower net income for the second quarter and first half of 2023 due to warmer temperatures and inflationary pressures.
Earnings missed estimates from Zacks.
In the second quarter of 2023, the company’s net income was $16.1 million, compared to $17.1 million reported in the same quarter of 2022. EPS in the quarter was $0.90 per share, compared to $0.96 per share reported in the same prior-year period. Net income in the second quarter of 2022 also included a $1.9 million one-time building sale gain, or EPS of $0.08.
Earnings during the second quarter of 2023 were driven by contributions from the Company’s Florida natural gas base rate proceeding, internal growth in the company’s natural gas distribution businesses, increased propane margins and fees, continued pipeline expansion projects, increased demand for compressed natural gas renewable natural gas and liquefied natural gas services and incremental contributions associated with regulated infrastructure programs.
These contributions were offset by the continued presence of significantly warmer weather on the Delmarva Peninsula and in Ohio during the second quarter of 2023 as well as higher interest expense associated with the company’s short-term borrowings.
For the first half of 2023, net income was $52.5 million compared to $54 million for the same period in 2022.
“The Company’s growth on a year-to-date basis continues to be overshadowed by warmer temperatures and the ongoing inflationary environment,” stated Jeff Householder, CEO.
The Company continues to support its long-term capital expenditures and earnings per share (EPS) guidance ranges. The company’s capital expenditures guidance ranges from $900 million to $1.1 billion for the five years ended 2025, while the EPS guidance range is $6.15 to $6.35 per share for 2025.
Capital expenditures for the six months ended June 30, were $91.9 million, and the full year estimate for 2023 continues to range from $200 million to $230 million