Chesapeake Utilities Corp. (CPK), a distributor of natural gas, reported higher second-quarter profit. According to the company, quarterly profit reflected an increased gross margin for the natural gas and propane segments, driven primarily by continued growth, increased interruptible services, and results of rate proceedings for the natural gas segment and increased margin per gallon of propane.
The Dover, Delaware-based company's second quarter net income rose 23% to $1.82 million or $0.27 per share from $1.48 million or $0.22 per share in the year-ago quarter.
During the second-quarter, the company recorded a $1.2 million charge related to an unconsummated acquisition. Net income excluding the charge would have increased by $1.1 million to $2.6 million or $0.37 per share from the same period of last year, the company noted.
The company's quarterly operating revenues increased to $69.06 million from $52.5 million in the same quarter of last year. Analysts, on average, polled by First Call/Thomson Financial expected the company to report earnings of $0.23 per share on revenues of $54.20 million for the second quarter.
For the six-month period, Chesapeake's net income declined to $9.39 million or $1.36 per share from year-ago net income of $9.47 million or $1.39 per share. Excluding the charge, net income would have increased by $671,000 to $10.1 million or $1.47 per share. Year-to-date revenues were $169.33 million, up from $146.03 million in the same period a year ago.
CPK closed Friday's regular trading on NYSE at $29.16, up $0.74, on a volume of 20,800 shares.
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