logo
Share SHARE
FONT-SIZE Plus   Neg

South Jersey Industries Profit Declines - Update

Gas utility South Jersey Industries Inc. (SJI), 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.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Jeff Bezos is now the world's second richest person. The founder and CEO of e-commerce giant Amazon.com Inc. has leapfrogged Berkshire Hathaway CEO Warren Buffett and Inditex fashion group founder Amancio Ortega to claim the second spot. In the annual letter to shareholders of hedge fund Pershing Square Capital Management L.P, CEO Bill Ackman admitted that the investment in Valeant Pharmaceuticals was a huge mistake. Valeant stock was down 19.2 percent in 2016 and tarnished the image of the hedge fund. A video posted by an outraged mother of her 13-year-old special needs son getting a thorough pat-down by a Transportation Security Administration officer at Dallas/Fort Worth International Airport has gone viral. The Texas woman, Jennifer Williamson, posted the two-minute video to Facebook on Sunday, showing her son who suffers from sensory processing disorder or SPD getting a thorough pat-down.
comments powered by Disqus
Follow RTT