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Page 1 of 3
FOR RELEASE
UNITIL REPORTS YEAR-END EARNINGS
HAMPTON, N.H., FEBRUARY 1, 2018—Unitil Corporation (NYSE: UTL) (www.unitil.com) today announced Net Income of $29.0 million, or $2.06 per share, for the year ended December 31, 2017, an increase of $1.9 million, or 7.0%, in Net Income, and $0.12 in Earnings Per Share, compared to 2016. The Company’s earnings for 2017 were driven by increases in natural gas and electric sales margins. Net Income for the three months ended December 31, 2017 was $11.2 million, or $0.79 per share, compared to Net Income of $10.2 million, or $0.73 per share, for the same period in 2016.
“Higher revenues, continued customer growth and the strengthening economy contributed to our earnings in 2017,” said Robert G. Schoenberger, Unitil’s Chairman and Chief Executive Officer. “We grew our customer base by an additional 2,100 customers and continue to make significant investments to upgrade and expand our natural gas and electric distribution systems to cost-effectively meet our customers’ growing energy needs.”
Natural gas sales margin was $109.7 million in 2017, an increase of $6.1 million compared to 2016, driven by higher natural gas distribution rates of $3.3 million and the positive impact of colder weather and customer growth of $2.8 million. Natural gas therm sales increased 3.9% in 2017 compared to 2016. Based on weather data collected in the Company’s natural gas service areas, there were 5% more Heating Degree Days in 2017 compared to 2016. As of December 31, 2017 the number of natural gas customers served by Unitil has increased by 1,400 in the last twelve months.
Electric sales margin was $92.2 million in 2017, an increase of $4.1 million compared to 2016. Electric sales margin in 2017 was positively affected by higher electric distribution rates of $5.4 million and customer growth of $1.0 million, partially offset by lower sales volumes due to the net impact of milder summer weather of $0.5 million and lower transmission revenues of $1.8 million. Total electric kilowatt-hour (kWh) sales decreased 0.3% in 2017, reflecting milder summer weather in 2017, largely offset by customer growth. Based on weather data collected in the Company’s electric service areas, there were 21% fewer Cooling Degree Days in 2017 compared to 2016. As of December 31, 2017, the number of electric customers served by Unitil has increased by 700 in the last twelve months.
Usource, the Company’snon-regulated energy brokering business, recorded revenues of $6.0 million for the twelve months ended December 31, 2017, holding relatively steady with 2016 revenue levels.
Operation and Maintenance (O&M) expenses increased $3.9 million in 2017 compared to 2016. The change in O&M expenses reflects higher compensation and benefit costs of $2.0 million and higher utility operating costs of $1.9 million. Utility operating costs include higher pass-through regulatory and vegetation management costs of $1.1 million, which are recovered on a reconciling basis in sales margins.
Depreciation, Amortization, Property Taxes and other expenses increased $1.6 million in the twelve months ended December 31, 2017 compared to 2016, reflecting higher depreciation and property taxes on higher utility plant assets in service, net of lower amortization of deferred major storm costs, which were being amortized for recovery over multi-year periods.
Interest Expense, net increased $0.6 million in the twelve months ended December 31, 2017 compared to 2016, reflecting interest on higher levels of short-term debt, partially offset by higher net interest income on regulatory assets/liabilities and repayment of higher cost long-term debt.
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| | | 6 Liberty Lane West Hampton, NH 03842 T 603.772.0775 www.unitil.com |
