South Jersey Industries Slips To Loss In Q3; Sees Weak 2013

(RTTNews) - South Jersey Industries, Inc. (SJI) announced a third quarter of 2013 GAAP loss from continuing operations of $1.2 million or a loss of $0.04 per share, compared to income of $2.2 million, or $0.07 per share in the third quarter of 2012.

Net loss for the quarter was $1.42 million, compared to net income of $2.01 million in the prior year quarter.

On an Economic basis, loss from continuing operations for the third quarter 2013 was $1.1 million, or a loss of $0.04 per share, compared to income of $4.1 million, or $0.13 per share, for the same period last year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.15 per share for the quarter. Analysts' estimates typically exclude special items.

Total operating revenues for the quarter grew to $128.81 million from last year's $111.98 million.

"While our third quarter results reflect the challenges our non-utility wholesale commodity business has encountered in the Marcellus, the current and anticipated utility growth at the core of our business, coupled with continued success in our energy production business, will propel SJI to its long-term earnings targets," said Edward J. Graham, chairman, president, and CEO of SJI.

"We remain confident in our ability to capitalize on the upside potential that the future holds for our business lines because of the foundation we have built to support long-term earnings growth," said Edward.

Due to the impact on its wholesale commodity business of Marcellus pipeline capacity constraints and low volatility in gas prices that significantly eroded trading margins, SJI anticipates that full year earnings results are likely to be at the low end of the range of its previously issued guidance. Analysts project annual earnings per share of $3.18.

Continuing contributions from utility and non-utility customer growth, retail energy project development and operation, and cumulative utility infrastructure investment recovery are expected to have the greatest earnings impacts on SJI's long-term performance, the company said.

The company said in August that it maintained its targeted guidance of 4-8 percent growth in Economic Earnings for 2013, anticipating performance gains in the second half of 2013 to be realized from cumulative infrastructure spending by South Jersey Gas, and the impacts of improved operating efficiencies within our non-utility businesses. The company's long-term goal remained to grow earnings by an average of at least 6-7 percent annually.