Unitil Corporation (NYSE: UTL) (www.unitil.com) today announced Net
Income of $12.4 million, or $0.88 per share, for the first quarter
of 2017, an increase of $1.5 million, or $0.10 per share, compared
to the first quarter of 2016. The Company’s earnings in the first
quarter of 2017 were driven by higher natural gas and electric
sales margins, reflecting: higher distribution rates, customer
growth and colder winter weather, compared to the first quarter of
2016.
“The colder weather in our service areas this winter compared to
last year, combined with solid customer growth and an effective
regulatory agenda all contributed to strong earnings in the first
quarter,” said Robert G. Schoenberger, Unitil’s Chairman and Chief
Executive Officer. “We continue to expand and upgrade our
distribution infrastructure, due to strong economic growth in our
service areas. We are well positioned for robust expansion in the
years ahead.”
Natural gas sales margin was $38.0 million in the three months
ended March 31, 2017, resulting in an increase of $2.1 million
compared to the same period in 2016. Gas sales margin in the first
quarter of 2017 was positively affected by: higher natural gas
distribution rates, the positive impact of colder winter weather on
sales and customer growth. Total therm sales of natural gas
increased 3.6% in the three months ended March 31, 2017 compared to
the same period in 2016. Based on weather data collected in the
Company’s natural gas service areas, there were 5.4% more HDD in
the first quarter of 2017 compared to the same period in 2016.
Electric sales margin was $22.0 million in the three months
ended March 31, 2017, resulting in an increase of $1.9 million
compared to the same period in 2016. Electric sales margin in the
first quarter of 2017 was positively affected by higher electric
distribution rates and customer growth.
Usource, the Company’s non-regulated energy brokering business,
recorded revenues of $1.7 million in the three months ended March
31, 2017, an increase of $0.1 million compared to the same period
in 2016. Usource’s revenues are primarily derived from fees
billed to suppliers as customers take delivery of energy from those
suppliers under term contracts brokered by Usource.
Operation and Maintenance (O&M) expenses increased $0.2
million in the three months ended March 31, 2017 compared to the
same period in 2016. The change in O&M expenses reflects higher
compensation and benefit costs of $0.4 million, partially offset by
lower utility operating costs of $0.2 million.
Depreciation, Amortization, Property Taxes and other expenses
increased $1.2 million in the three months ended March 31, 2017
compared to the same period in 2016, reflecting higher depreciation
and property taxes on higher utility plant assets in
service.
Interest Expense, net increased $0.5 million in the three months
ended March 31, 2017 compared to the same period in 2016,
reflecting lower net interest income on net regulatory
assets/liabilities and higher levels of short-term debt.
Income Taxes increased $0.7 million for the three months ended
March 31, 2017, reflecting higher pre-tax earnings in the current
period.
At its January 2017 and April 2017 meetings, the Unitil
Corporation Board of Directors declared quarterly dividends on the
Company’s common stock of $0.36 per share. These quarterly
dividends result in a current effective annual dividend rate to
$1.44 per share, representing 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
first quarter 2017 results on Thursday, April 27, 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.
For more information please contact:
David Chong – Investor
Relations |
Alec
O’Meara – Media Relations |
Phone:
603-773-6499 |
Phone:
603-773-6404 |
Email:
chong@unitil.com |
Email: omeara@unitil.com |
|
|
Selected financial data for 2017 and 2016 is presented in the
following table:
Unitil Corporation -
Condensed Financial Data |
(Millions, except Per Share and Shares Data)
(Unaudited) |
|
Three Months Ended March 31, |
|
|
|
2017 |
|
|
2016 |
|
Change |
|
|
|
|
|
|
|
Gas Therm Sales: |
|
|
|
|
|
|
Residential |
|
|
21.0 |
|
|
19.8 |
|
|
6.1 |
% |
Commercial/Industrial |
|
|
64.9 |
|
|
63.1 |
|
|
2.9 |
% |
Total Gas Therm Sales |
|
|
85.9 |
|
|
82.9 |
|
|
3.6 |
% |
|
|
|
|
|
|
|
Electric kWh Sales: |
|
|
|
|
|
|
Residential |
|
|
176.2 |
|
|
175.4 |
|
|
0.5 |
% |
Commercial/Industrial |
|
|
236.2 |
|
|
241.9 |
|
|
(2.4 |
%) |
Total Electric kWh Sales |
|
|
412.4 |
|
|
417.3 |
|
|
(1.2 |
%) |
|
|
|
|
|
|
|
|
|
Gas
Revenues |
|
$ |
74.8 |
|
$ |
73.1 |
|
$ |
1.7 |
|
Cost of
Gas Sales |
|
|
36.8 |
|
|
37.2 |
|
|
(0.4 |
) |
Gas Sales Margin |
|
|
38.0 |
|
|
35.9 |
|
|
2.1 |
|
|
|
|
|
|
|
|
Electric
Revenues |
|
|
49.5 |
|
|
51.1 |
|
|
(1.6 |
) |
Cost of
Electric Sales |
|
|
27.5 |
|
|
31.0 |
|
|
(3.5 |
) |
Electric Sales Margin |
|
|
22.0 |
|
|
20.1 |
|
|
1.9 |
|
|
|
|
|
|
|
|
Usource
Revenues |
|
|
1.7 |
|
|
1.6 |
|
|
0.1 |
|
Total Sales Margin |
|
|
61.7 |
|
|
57.6 |
|
|
4.1 |
|
|
|
|
|
|
|
|
Operation
& Maintenance Expenses |
|
|
17.6 |
|
|
17.4 |
|
|
0.2 |
|
Depreciation, Amortization, Property Taxes & Other |
|
|
18.0 |
|
|
16.8 |
|
|
1.2 |
|
Interest
Expense, Net |
|
|
6.0 |
|
|
5.5 |
|
|
0.5 |
|
|
|
|
|
|
|
|
Income Before
Income Taxes |
|
|
20.1 |
|
|
17.9 |
|
|
2.2 |
|
|
|
|
|
|
|
|
Income Tax Expense |
|
|
7.7 |
|
|
7.0 |
|
|
0.7 |
|
|
|
|
|
|
|
|
Net
Income |
|
$ |
12.4 |
|
$ |
10.9 |
|
$ |
1.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Share |
|
$ |
0.88 |
|
$ |
0.78 |
|
$ |
0.10 |
|
|
|
|
|
|
|
|
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