CH Energy Group Posts Solid Second Quarter Earnings
(Poughkeepsie, NY) CH Energy Group (NYSE:CHG) earnings per share during the second quarter of 2007 climbed by nearly 27 percent as compared to the same quarter of last year. Earnings per share for the second quarter of 2007 totaled 33 cents, versus 26 cents during the second quarter of 2006. Year-to-date earnings per share stand at $1.71, in comparison to $1.42 for the first half of 2006 – reflecting a 20-percent improvement. As a result of the strong performance, Company officials reiterated their 2007 guidance of earnings per share totaling between $2.55 to $2.80.
"Our improved second-quarter results were primarily driven by colder weather in the late winter and early spring," explained Steven V. Lant, Chairman of the Board, President and C.E.O. "Continued growth in Central Hudson's customer base and control of operating expenses also contributed to a solid quarter."
The following summarizes quarterly results by business unit:
Central Hudson Gas & Electric Corporation
In addition to cold, late-winter weather that increased energy usage, sales growth and improved cost recovery resulting from new delivery rates helped to raise earnings per share at Central Hudson Gas & Electric Corporation. The utility earned 32 cents during the second quarter, as compared to the 25 cents it posted during the same period of the prior year, an increase of 28 percent. “So far this year, we have not experienced additional conservation that affected sales in 2006, and we continue to see modest growth in the number of customers we serve,” Lant said.
Lant projects that Central Hudson will contribute between $1.90 and $2.00 to annual earnings per share. Earnings per share year to date total $1.15.
Griffith Energy Services, Inc.
“Improved net margins and weather helped to enhance the quarter-over-quarter performance of Griffith,” Lant noted. The fuel distribution subsidiary posted a loss of 9 cents for the quarter, an expected outcome given the seasonal nature of the industry – but improved results from the 13-cent loss incurred during the second quarter of 2006.
"We have invested nearly $10 million in four acquisitions so far in 2007, and we believe that additional opportunities that meet our performance and profitability standards are still available," Lant noted, re-iterating that the subsidiary now serves more than 100,000 customers, a 17-percent increase over the same period of last year.
Griffith's year-to-date earnings per share total 31 cents. CH Energy Group projects 2007 earnings per share from the subsidiary to total between 25 and 30 cents.
Other Businesses & Investments
Quarterly earnings per share for other businesses and investments, including the Company’s renewable energy portfolio, totaled 10 cents during the quarter, down from 14 cents during the second quarter of last year, which included a 3-cent gain from the sale of property. Earnings per share for the first six months of 2007 from these investments totaled 25 cents, 3 cents (or 14 percent) above the same period of 2006.
Lant reiterated that annual earnings per share for its other businesses are projected to total between 40 and 50 cents for 2007, and that he projects consolidated earnings per share for all business units will total between $2.55 and $2.80.
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About CH Energy Group, Inc.
With nearly 470,000 customers, CH Energy Group, Inc. is a family of companies seizing new opportunities in the energy marketplace through two primary subsidiaries: Central Hudson Gas & Electric Corporation is a regulated transmission and distribution utility serving approximately 367,000 customers in eight counties of New York State’s Mid-Hudson River Valley, and delivering natural gas and electricity in a 2,600-square-mile service territory that extends north from the suburbs of metropolitan New York City to the Capital District at Albany. Central Hudson Enterprises Corporation, a non-regulated subsidiary, is the umbrella for a family of energy-related companies and investments focused primarily on fuel distribution and renewable energy. Griffith Energy Service’s fuel distribution business supplies energy products and services to more than 100,000 customers in nine states, stretching from Rhode Island to the Washington, D.C. area. CHEC also has interests in a Lexington, Neb., ethanol plant, two wind power projects, and a biomass plant in upstate New York.
Conference Call: Mr. Lant will conduct a conference call with investors to review financial results at 2:00 p.m. (ET) today, July 30, 2007. Dial-in: 1-800-230-1085; Conference Name “CH Energy Group.” Supplemental materials are posted on the Company’s Web site to assist participants in following the Conference Call presentation. A digitized replay of the call will be available from 7:15 p.m. (ET) on July 30, 2007, until 11:59 p.m. (ET) on August 6, 2007, by dialing 1-800-475-6701 and entering access code #879933. In addition, the call will be Web cast live in listen-only mode and available for replay for approximately 30 days within the Investor Relations section of the Company’s Web site at www.CHEnergyGroup.com.
Forward-Looking Statements
Statements included in this news release and any documents incorporated by reference which are not historical in nature are intended to be, and are hereby identified as, "forward-looking statements" for purposes of the safe harbor provided by Section 21E of the Exchange Act. Forward-looking statements may be identified by words including "anticipates," "intends," "estimates," "believes," "projects," "expects," "plans," "assumes," "seeks," and similar expressions. Forward-looking statements including, without limitation, those relating to CH Energy Group, Inc. and its subsidiaries' future business prospects, revenues, proceeds, working capital, liquidity, income, and margins, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements, due to several important factors, including those identified from time-to-time in the forward-looking statements. Those factors include, but are not limited to: weather; fuel prices; corn and ethanol prices; plant capacity factors; energy supply and demand; interest rates; potential future acquisitions; developments in the legislative, regulatory, and competitive environment; market risks; electric and natural gas industry restructuring and cost recovery; the ability to obtain adequate and timely rate relief; changes in fuel supply or costs including future market prices for energy, capacity, and ancillary services; the success of strategies to satisfy electricity, natural gas, fuel oil, and propane requirements; the outcome of pending litigation and certain environmental matters, particularly the status of inactive hazardous waste disposal sites and waste site remediation requirements; and certain presently unknown or unforeseen factors, including, but not limited to, acts of terrorism. CH Energy Group, Inc. and its subsidiaries undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise. Given these uncertainties, undue reliance should not be placed on the forward-looking statements. |