South Jersey Industries 4Q profit rises
Gas utility South Jersey Industries said a rebound in the wholesale energy markets offset weakness on the retail side as it reported an 8 percent rise jump in profit Wednesday for the fourth quarter.
The company posted improved margins because of ample natural gas storage, which allowed it to benefit from volatile prices.
Profits rose to $23.4 million from $21.7 million a year earlier, even as revenue declined 17 percent.
Energy companies are still smarting from the economic downturn as some of the biggest energy users, like manufactures, pare back operations.
The weak economy, mild weather and an interest expense incurred on an investment in a Las Vegas energy project cut into earnings from the retail side.
Profit for the three-month period was equivalent to 78 cents a share, compared with $21.7 million, or 73 cents a share, a year earlier. Revenue in the quarter fell to $221.7 million from $267.7 million a year earlier.
Analysts surveyed by Thomson Reuters, who generally exclude one-time items from their estimates, were expecting earnings of 82 cents a share on revenue of $266.5 million.
Full-year profit came to $58.1 million, or $1.94 a share, compared with profit of $76.9 million, or $2.58 a share, in 2008. Twelve-month revenue came to $845.4 million, compared with $962.0 million in 2008.
Company shares fell 14 cents to $39.44.
Copyright 2010 AP News
