Chesapeake Utilities 1Q Results Fail To Cheer Investors

Chesapeake Utilities Corporation

disclosed that it earned a net income of $20.4 million, or $1.33 per share in the first quarter. This was 3.5% lower than $21.11 million or $1.44 per share earned in the same quarter last year. The company's total operating revenues fell 14% to $146.3 million from $170.08 million in the previous year quarter. Both earnings and revenue fell significantly from the analysts' expectations of $1.50 a share and $83.20 million. Chesapeake Utilities Corporation blamed warmer weather for reducing current quarterly earnings by 27 cents per share compared to the first quarter of 2015 or by 16 cents per share compared to normal weather conditions. The company added that the Growth in the natural gas distribution and transmission business generated $2.7 million in additional gross margin during the quarter. Its Aspire Energy of Ohio also contributed $4.2 million in gross margin and $2.6 million in operating income during the first quarter. - The company's President and CEO, Michael McMasters, reacted to the results and said that "Despite significantly warmer weather, net income for the first quarter was only 3.5 percent lower than the same quarter in 2015, thanks to the continued growth and diversity of our businesses. The execution of our growth strategy and the diversity of our business portfolio have created natural hedges against adverse weather impacts." He continued to say that "I am pleased to report that Aspire Energy of Ohio increased our earnings per share in its first full year of operations, consistent with our projections at the time of the acquisition. We are also making significant progress on several large growth projects, including the combined heat and power plant in Florida and new natural gas transmission services on the Delmarva Peninsula, which will begin to come on line later this year. Our primary objective remains identifying and developing profitable growth opportunities to enable us to generate continued future earnings and dividend growth." Shares of the company traded 0.07% lower on Tuesday.