Breaking News
FONT-SIZE Plus   Neg
Share SHARE

South Jersey Industries Profit Declines - Update

Gas utility South Jersey Industries Inc. (SJI: Quote), Thursday reported a lower fourth-quarter profit, partly hurt by derivative losses. The company's earnings missed Street estimates. South Jersey said that while earnings from gas utility business grew slightly during the quarter, its non-utility businesses slackened, mainly at Wholesale Energy.

The company also said that Wholesale gas marketing continues to be impacted by thin storage spreads as seasonal variations in prices and the value of transportation assets are not robust.

The Folsom, New Jersey-based company reported fourth-quarter net income from continuing operations of $25.6 million or $0.81 per share, compared with $37 million or $1.22 per share last year.

Results for the reporting quarter included, among other items, derivative losses of $3.6 million, compared with gains of over $5 million in the prior year.

Excluding items, economic earnings for the quarter totaled $30.60 million or $0.98 per share, compared with $31.8 million or $1.05 per share a year ago.

On average, 3 analysts polled by Thomson Reuters expected earnings of $1.05 per share for the quarter. Analysts' estimates typically exclude special items.

Among segments, net income at its utility business, South Jersey Gas, edged up to $19.4 million from $19.3 million last year. Results in 2012 benefited from the impact of incremental investments under infrastructure programs and residential customer growth, the company said.

The New Jersey Board of Public Utilities recently approved a new four year accelerated infrastructure investment program that permits investments of $35.3 million annually, for a total of $141.2 million.

South Jersey Gas added 6,002 net customers in 2012, for a total of 357,306 customer, primarily through converting customers to natural gas from other fuel sources.

The company's non-utility businesses, comprising Wholesale Energy and Retail Energy, reported net income from continuing operations of $6 million for the quarter. This compares with income of $17.7 million last year. Results were hurt by mark-to-market accounting rules on its retail and wholesale commodity marketing businesses.

The company's stock is trading at $55.02, up 0.95%, on the NYSE.

Register
To receive FREE breaking news email alerts for South Jersey Industries Inc. and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
The U.K. economy grew more than estimated in the second quarter and the current account deficit widened from the first quarter, the Office for National Statistics said Tuesday. Gross domestic product grew 0.9 percent sequentially, up from the prior estimate of 0.8 percent. The annual growth was confirmed at 3.2 percent. Eurozone inflation slowed in September, as expected, to the lowest since late 2009 and the unemployment rate remained stable at a double digit level in August putting pressure on the European Central Bank to launch a full-blown easing. Inflation came in at 0.3 percent, slower than August's 0.4 percent. This was the lowest since October 2009, when prices fell 0.1 percent. Chinese authorities on Tuesday eased some rules for mortgages for buying a second home, in a bid to boost the housing market. The People's Bank of China and the China Banking Regulatory Commission said in a joint statement that buyers who already own one apartment, but have paid off the mortgage...
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.