Unitil Corporation (NYSE:UTL) (www.unitil.com) today announced Net
Income of $27.1 million, or $1.94 per share, for the year ended
December 31, 2016, a 3.0% increase of $0.8 million in Net Income,
and $0.05 per share, compared to 2015. The Company’s earnings for
the twelve months ended December 31, 2016 were driven by increases
in natural gas and electric sales margins and lower utility
operating costs. Net Income for the three months ended December 31,
2016 was $10.2 million, or $0.73 per share, compared to Net Income
of $9.3 million, or $0.67 per share, for the same period in 2015.
“Customer growth, an effective regulatory agenda and cost
management all contributed to continued earnings growth in 2016,”
said Robert G. Schoenberger, Unitil’s Chairman and Chief Executive
Officer. “We grew our customer base by another 2,200 customers,
achieved record levels of service reliability, and once again made
significant investments to upgrade and expand our natural gas and
electric distribution systems to meet our customers growing energy
needs.”
Natural gas sales margin was $103.6 million in the twelve months
ended December 31, 2016, resulting in an increase of $1.7 million
compared to 2015. Gas sales margin in the twelve month period was
positively affected by higher natural gas distribution rates and
customer growth, partially offset by the negative impact of warmer
winter weather on sales in the beginning of 2016. Based on weather
data collected in the Company’s natural gas service areas, there
were 8% fewer Heating Degree Days (HDD) in 2016 compared to 2015.
The Company estimates that the warmer winter weather in 2016
negatively impacted gas sales margin by approximately $3.3 million,
or $0.15 per share.
Electric sales margin was $88.1 million in the twelve months
ended December 31, 2016, resulting in an increase of $2.6 million
compared to 2015. Electric sales margin in 2016 was positively
affected by customer growth, higher electric distribution rates and
the favorable effect of above normal summer temperatures.
Usource, the Company’s non-regulated energy brokering business,
recorded revenues of $6.1 million for the twelve months ended
December 31, 2016, essentially on par with 2015.
Operation and Maintenance (O&M) expenses decreased $0.8
million for the twelve month period ended December 31, 2016
compared to 2015, reflecting lower utility operating costs of $2.0
million, including lower bad debt expenses and electric and gas
distribution system maintenance costs, and lower outside service
professional fees of $0.9 million, partially offset by higher
compensation and benefit costs of $2.1 million.
Depreciation, Amortization, Property Taxes and other expenses
increased $3.6 million in the twelve months ended December 31, 2016
compared to 2015, reflecting higher depreciation and property taxes
on higher utility plant assets in service.
Interest Expense, net increased $0.6 million in the twelve
months ended December 31, 2016 compared to 2015, primarily
reflecting higher levels of short-term debt and lower net interest
income on regulatory assets.
Income Taxes were essentially unchanged for the twelve months
ended December 31, 2016 compared to 2015, reflecting higher pre-tax
earnings in 2016 and higher federal and state tax credits
recognized in 2016.
At its January 2017 meeting, the Unitil Corporation Board of
Directors declared a quarterly dividend on the Company’s common
stock of $0.36 per share, an increase of $0.005 per share on a
quarterly basis, resulting in an increase in the effective annual
dividend rate to $1.44 per share from $1.42 per share. This
dividend declaration continues an unbroken record of quarterly
dividend payments since trading began in Unitil’s common stock.
The Company’s earnings are seasonal and are typically higher in
the first and fourth quarters when customers use natural gas for
heating purposes.
The Company will hold a quarterly conference call to discuss
fourth quarter and full year 2016 results on Thursday, February 2,
2017, at 2:00 p.m. Eastern Time. This call is being webcast and can
be accessed in the Investor Relations section of Unitil’s website,
www.unitil.com.
About Unitil Corporation
Unitil Corporation provides energy for life by safely and
reliably delivering natural gas and electricity in New England. We
are committed to the communities we serve and to developing people,
business practices, and technologies that lead to the delivery of
dependable, more efficient energy. Unitil Corporation is a public
utility holding company with operations in Maine, New Hampshire and
Massachusetts. Together, Unitil’s operating utilities serve
approximately 104,300 electric customers and 79,900 natural gas
customers. Other subsidiaries include Usource, Unitil’s
non-regulated business segment. For more information about our
people, technologies, and community involvement please visit
www.unitil.com.
Forward-Looking Statements
This press release may contain forward-looking statements. All
statements, other than statements of historical fact, included in
this press release are forward-looking statements. Forward-looking
statements include declarations regarding Unitil’s beliefs and
current expectations. These forward-looking statements are subject
to the inherent risks and uncertainties in predicting future
results and conditions that could cause the actual results to
differ materially from those projected in these forward-looking
statements. Some, but not all, of the risks and uncertainties
include the following: Unitil’s regulatory environment (including
regulations relating to climate change, greenhouse gas emissions
and other environmental matters); fluctuations in the supply of,
the demand for, and the prices of, gas and electric energy
commodities and transmission and transportation capacity and
Unitil’s ability to recover energy supply costs in its rates;
customers’ preferred energy sources; severe storms and Unitil’s
ability to recover storm costs in its rates; general economic
conditions; variations in weather; long-term global climate change;
Unitil’s ability to retain its existing customers and attract new
customers; increased competition; and other risks detailed in
Unitil's filings with the Securities and Exchange Commission. These
forward looking statements speak only as of the date they are made.
Unitil undertakes no obligation, and does not intend, to update
these forward-looking statements.
Selected financial data for 2016 and 2015 is presented in the
following table:
|
Unitil Corporation – Condensed Consolidated
Financial Data |
(Millions, except Per Share data)(Unaudited) |
|
|
Three Months Ended December
31, |
|
Twelve Months Ended December 31, |
|
2016 |
2015 |
Change |
|
2016 |
2015 |
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gas Therm Sales: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential |
|
|
10.1 |
|
|
8.9 |
|
|
13.5 |
% |
|
|
|
40.6 |
|
|
45.2 |
|
|
(10.2 |
%) |
Commercial/Industrial |
|
|
43.5 |
|
|
40.6 |
|
|
7.1 |
% |
|
|
|
165.1 |
|
|
174.2 |
|
|
(5.2 |
%) |
Total Gas Therm Sales |
|
|
53.6 |
|
|
49.5 |
|
|
8.3 |
% |
|
|
|
205.7 |
|
|
219.4 |
|
|
(6.2 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Electric kWh Sales: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential |
|
|
145.4 |
|
|
143.0 |
|
|
1.7 |
% |
|
|
|
651.3 |
|
|
671.4 |
|
|
(3.0 |
%) |
Commercial/Industrial |
|
|
226.5 |
|
|
231.3 |
|
|
(2.1 |
%) |
|
|
|
977.5 |
|
|
996.3 |
|
|
(1.9 |
%) |
Total Electric kWh Sales |
|
|
371.9 |
|
|
374.3 |
|
|
(0.6 |
%) |
|
|
|
1,628.8 |
|
|
1,667.7 |
|
|
(2.3 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gas
Revenues |
|
$ |
57.1 |
|
$ |
53.0 |
|
$ |
4.1 |
|
|
|
$ |
181.2 |
|
$ |
202.6 |
|
$ |
(21.4 |
) |
Cost of
Gas Sales |
|
|
25.2 |
|
|
24.2 |
|
|
1.0 |
|
|
|
|
77.6 |
|
|
100.7 |
|
|
(23.1 |
) |
Gas Sales Margin |
|
|
31.9 |
|
|
28.8 |
|
|
3.1 |
|
|
|
|
103.6 |
|
|
101.9 |
|
|
1.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Electric
Revenues |
|
|
45.7 |
|
|
47.9 |
|
|
(2.2 |
) |
|
|
|
196.1 |
|
|
218.0 |
|
|
(21.9 |
) |
Cost of
Electric Sales |
|
|
23.7 |
|
|
26.3 |
|
|
(2.6 |
) |
|
|
|
108.0 |
|
|
132.5 |
|
|
(24.5 |
) |
Electric Sales Margin |
|
|
22.0 |
|
|
21.6 |
|
|
0.4 |
|
|
|
|
88.1 |
|
|
85.5 |
|
|
2.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Usource
Revenues |
|
|
1.5 |
|
|
1.5 |
|
|
--- |
|
|
|
|
6.1 |
|
|
6.2 |
|
|
(0.1 |
) |
Total Sales Margin: |
|
|
55.4 |
|
|
51.9 |
|
|
3.5 |
|
|
|
|
197.8 |
|
|
193.6 |
|
|
4.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operation
& Maintenance Expenses |
|
|
17.7 |
|
|
17.1 |
|
|
0.6 |
|
|
|
|
66.3 |
|
|
67.1 |
|
|
(0.8 |
) |
Depreciation, Amortization, Property Taxes & Other |
|
|
16.5 |
|
|
15.6 |
|
|
0.9 |
|
|
|
|
66.5 |
|
|
62.9 |
|
|
3.6 |
|
Interest
Expense, net |
|
|
5.8 |
|
|
4.6 |
|
|
1.2 |
|
|
|
|
22.5 |
|
|
21.9 |
|
|
0.6 |
|
Income Before
Income Taxes |
|
|
15.4 |
|
|
14.6 |
|
|
0.8 |
|
|
|
|
42.5 |
|
|
41.7 |
|
|
0.8 |
|
Income Tax Expense |
|
|
5.2 |
|
|
5.3 |
|
|
(0.1 |
) |
|
|
|
15.4 |
|
|
15.4 |
|
|
--- |
|
Net
Income |
|
$ |
10.2 |
|
$ |
9.3 |
|
$ |
0.9 |
|
|
|
$ |
27.1 |
|
$ |
26.3 |
|
$ |
0.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Share |
|
$ |
0.73 |
|
$ |
0.67 |
|
$ |
0.06 |
|
|
|
$ |
1.94 |
|
$ |
1.89 |
|
$ |
0.05 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For more information please
contact:
David Chong – Investor RelationsPhone: 603-773-6499
Email: chong@unitil.com
Alec O’Meara – Media RelationsPhone: 603-773-6404
Email:
omeara@unitil.com
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