Piedmont Natural Gas Reports 2005 Year-End Results
CHARLOTTE, N.C., Dec 16, 2005 /PRNewswire-FirstCall/ — Piedmont Natural Gas (NYSE: PNY) today announced results for the fiscal year and fourth quarter ended October 31, 2005, subject to completion of its annual audit.
For the 2005 fiscal year, the Company reported net income of $101.3 million, or $1.32 per diluted share. These results compare with net income of $95.2 million, or $1.27 per diluted share, for the 2004 fiscal year. For the three months ended October 31, 2005, the Company’s seasonal fourth-quarter loss was ($5.0 million), or ($0.06) per diluted share, compared with ($12.6 million), or ($0.16) per diluted share, for the prior-year fourth quarter.
System throughput for fiscal year 2005 totaled 204.4 million dekatherms, compared with throughput of 201.3 million dekatherms for the previous year. Throughput for the fourth quarter totaled 38.1 million dekatherms, compared with 34.1 million dekatherms for the previous year’s quarter. Weather for the 2005 fiscal year was 2% warmer than 2004 and the 2005 fourth quarter was 53% colder than the prior-year quarter. Throughput for the year and quarter increased compared with the prior periods primarily due to summer power generation volumes.
Margin for the year and quarter increased by $10.8 million and $2.9 million, respectively, over the prior periods. The increases are primarily due to strong residential and commercial customer growth, increased consumption resulting from the colder May and October weather and successful wholesale marketing activities. Operations and maintenance expenses for the year and quarter increased primarily due to higher employee benefits, payroll, utilities and rent expenses. General taxes for the year increased primarily due to higher payroll and property taxes.
Other income (expense), net of income taxes, was $20.8 million for the year and $3.0 million for the quarter, compared with $15.3 million and ($4.0) million, respectively, for the same periods of the prior year. Included in other income (expense) are the results from the Company’s joint venture activities. The Company’s interest in SouthStar contributed $13.5 million to net income in fiscal 2005 and $1.0 million in the fourth quarter, compared with $11.9 million and $0.3 million for the same periods of the prior year. Two other joint ventures, Pine Needle LNG and Cardinal Pipeline, contributed combined net income of $3.4 million in fiscal 2005 and $0.9 million in the fourth quarter, compared with $3.3 million and $0.9 million for the same periods in fiscal 2004. The current year and quarter include an expense of $1.0 million for funding the Piedmont Natural Gas Foundation compared with $7.0 million in the same periods of the prior year. Earnings in the 2004 fiscal year include $4.6 million, or $0.06 per diluted share, of one-time joint venture gains in the first quarter.
“We are pleased with our performance in 2005, especially in light of the challenging market conditions facing our company and industry,” commented Thomas E. Skains, Chairman, President and Chief Executive Officer. “Our employees are working diligently to manage change and are focused on performance. We must continue this focus in 2006 as we address the increasing challenges associated with a tight industry supply and demand balance and escalating wholesale natural gas prices caused in part by Hurricanes Katrina and Rita.”
DIVIDEND DECLARED
At the Company’s regular quarterly Board of Directors meeting held today, a quarterly dividend on Common Stock of 23 cents per share was declared, payable January 13, 2006, to holders of record at the close of business on December 23, 2005.
CONFERENCE CALL
In conjunction with this fourth-quarter earnings release, you are invited to listen to the conference call that will be broadcast live over the Internet on Monday, December 19, 2005, at 2:30 p.m. Eastern Time, hosted by Chairman, President and Chief Executive Officer Thomas E. Skains. Log on to the web at http://www.piedmontng.com and click on Investor Relations, then on Presentations. The conference call will be archived on the Presentations page of the website within the Investor Relations section.
Piedmont Natural Gas Company
Summary of Operations
(in thousands except per share amounts and degree days)
October 31
% Increase
2005
2004
(Decrease)
Three Months Ended
(Unaudited)
(Unaudited)
Operating Revenues
$
339,588
$
213,806
59
%
Cost of Gas
260,342
137,500
89
%
Margin
79,246
76,306
4
%
Operations and Maintenance Expenses
54,188
52,268
4
%
Depreciation
21,909
20,727
6
%
General Taxes
6,374
6,614
-4
%
Utility Income Taxes
(5,708
)
(5,900
)
-3
%
Operating Income
2,483
2,597
-4
%
Other Income (Expense), net
2,954
(3,990
)
-174
%
Utility Interest Charges
10,109
11,165
-9
%
Income before Minority Interest
(4,672
)
(12,558
)
63
%
Less Minority Interest
301
(22
)
-1468
%
Net Income
($4,973
)
($12,536
)
60
%
Average Shares of Common Stock:
Basic
76,623
76,639
0
%
Diluted
76,623
76,639
0
%
Earnings Per Share of Common Stock:
Basic
($0.06
)
($0.16
)
63
%
Diluted
($0.06
)
($0.16
)
63
%
System Throughput — Dekatherms
38,094
34,115
12
%
Gas Customers Billed in October
877
856
2
%
System Average Degree Days — Actual
177
116
53
%
System Average Degree Days — Normal
225
223
1
%
Percent Normal Degree Days
79
%
52
%
51
%
October 31
% Increase
2005
2004
(Decrease)
Twelve Months Ended
(Unaudited)
(Unaudited)
Operating Revenues
$
1,761,091
$
1,529,739
15
%
Cost of Gas
1,261,952
1,041,370
21
%
Margin
499,139
488,369
2
%
Operations and Maintenance Expenses
206,983
200,282
3
%
Depreciation
85,169
82,276
4
%
General Taxes
29,807
27,011
10
%
Utility Income Taxes
51,880
51,485
1
%
Operating Income
125,300
127,315
-2
%
Other Income (Expense), net
20,828
15,285
36
%
Utility Interest Charges
44,256
47,364
-7
%
Income before Minority Interest
101,872
95,236
7
%
Less Minority Interest
602
48
1154
%
Net Income
$
101,270
$
95,188
6
%
Average Shares of Common Stock:
Basic
76,680
74,359
3
%
Diluted
76,992
74,797
3
%
Earnings Per Share of Common Stock:
Basic
$
1.32
$
1.28
3
%
Diluted
$
1.32
$
1.27
4
%
System Throughput — Dekatherms
204,438
201,344
2
%
Gas Customers Billed in October
877
856
2
%
System Average Degree Days — Actual
3,266
3,331
-2
%
System Average Degree Days — Normal
3,455
3,431
1
%
Percent Normal Degree Days
95
%
97
%
-3
%
Forward-Looking Statement
This press release contains forward-looking statements. These statements are based on management’s current expectations and information currently available and are believed to be reasonable and are made in good faith. However, the forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in the statements. Factors that may make the actual results differ from anticipated results include, but are not limited to, economic conditions, competition from other providers of similar products and other uncertainties, all of which are difficult to predict and some of which are beyond our control. For these reasons, you should not rely on these forward-looking statements when making investment decisions. The words “expect,” “believe,” “project,” “anticipate,” “intend,” “should,” “could,” “will” and variations of such words and similar expressions are intended to identify forward-looking statements. We do not undertake any obligation to update publicly any forward-looking statement, either as a result of new information, future events or otherwise. More information about the risks and uncertainties relating to these forward-looking statements may be found in Piedmont’s filings with the SEC on Forms 10-K and Forms 10-Q, which are available on the SEC’s website at http://www.sec.gov.
About Piedmont Natural Gas
Piedmont Natural Gas (NYSE: PNY) is an energy services company primarily engaged in the distribution of natural gas to 990,000 residential, commercial and industrial utility customers in North Carolina, South Carolina and Tennessee, including 61,000 customers served by municipalities who are wholesale customers. Its subsidiaries are invested in joint venture, energy-related businesses, including unregulated retail natural gas marketing, interstate natural gas storage and intrastate natural gas transportation. More information about Piedmont Natural Gas is available on the Internet at www.piedmontng.com.
SOURCE Piedmont Natural Gas
CONTACTS: Media, David L. Trusty, +1-704-731-4391, or
+1-704-507-6393, or
david.trusty@piedmontng.com , or
Investors, Headen B. Thomas, +1-704-731-4438, or
+1-704-651-7137, or
headen.thomas@piedmontng.com ,
both of Piedmont Natural Gas;
or Agency Contact, David Coburn of LGA Inc., +1-704-552-6565, or
+1-704-906-9372 or
coburn@lgapr.com
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