EnergyNorth Reports Decline in Earnings Due to Unusual Weather Patterns

Strategic Insights -

EnergyNorth, the parent holding company of EnergyNorth Natural Gas, Inc. and EnergyNorth Propane, Inc., reported a decline in earnings for the second fiscal quarter ended March 31, 1995. Earnings for the quarter were $5,904,000, down from $7,283,000 in the same quarter last year. The decline can be attributed to the unusually warm winter, with temperatures 19 percent warmer than the same period last year and 10 percent warmer than normal. As a result, quarterly earnings were lower due to an 18 percent decrease in firm utility sendout and volumes transported.

Key Takeaways:

  • EnergyNorth reported earnings for the second fiscal quarter of $5,904,000, down from $7,283,000 in the same quarter last year.
  • The earnings decline was attributed to the impact of unusually warm weather, with temperatures 19 percent warmer than the same period last year and 10 percent warmer than normal.
  • Quarterly earnings were lower due to an 18 percent decrease in firm utility sendout and volumes transported.
  • Utility customers increased by over 2 percent compared to last year, while retail propane customers grew more than 12 percent.
  • The company continued to reduce operating expenses, striving to provide more efficient service to its customers.
  • For the first six months of fiscal 1995, earnings applicable to common stock were $8,228,000, or $2.61 per share.
  • For the 12 months ended March 31, 1995, earnings applicable to common stock were $3,124,000, or $0.99 per share.

Statistics:

  • Earnings for the second fiscal quarter: $5,904,000 (1995) vs. $7,283,000 (1994)
  • Weather-related temperature increase: 18% (1995) vs. 10% (normal)
  • Decrease in firm utility sendout and volumes transported: 18%
  • Increase in utility customers: 2.1% (1995) vs. 1994
  • Increase in retail propane customers: 12.3% (1995) vs. 1994
  • Earnings for the first six months of fiscal 1995: $8,228,000 (1995) vs. $10,526,000 (1994)
  • Earnings applicable to common stock for the 12 months ended March 31, 1995: $3,124,000 (1995) vs. $5,773,000 (1994)

Sources:

  • Business Wire, "EnergyNorth Reports Financial Results for Second Fiscal Quarter", May 2, 1995
  • EnergyNorth Inc., "Second Fiscal Quarter Earnings Release", March 31, 1995