Green Mountain Power Reports Second Quarter Earnings
August 02 2005 - 9:54AM
Business Wire
Green Mountain Power Corporation (NYSE: GMP) today announced
consolidated earnings of $0.45 per share of common stock, diluted,
for the second quarter of 2005, compared with $0.34 per share,
diluted, for the same period in 2004. Earnings for the first six
months of 2005 are $1.02 per share, diluted, compared with $1.06
per share, diluted, for the same period in 2004. "We are pleased
with operating results for the second quarter, which reflect lower
power supply costs and increased sales to residential and small
commercial and industrial customers," said Christopher L. Dutton,
President and Chief Executive Officer. "We continue to expect
earnings for the year to range between $2.08 and $2.19 per share."
Total operating revenues were essentially unchanged while power
supply expenses decreased by $2.6 million in the second quarter of
2005, compared with the same period last year. The increased
margins (operating revenues less cost of power) caused second
quarter 2005 earnings per share to increase by approximately 30
cents, including the effects of an adjustment to operating
reserves. Increased deliveries of lower priced energy under power
supply contracts, lower power supply contract unit prices and
higher retail sales of electricity all contributed to greater
margins on the sale of electricity during the second quarter of
2005. Retail operating revenues for the second quarter of 2005 rose
by $1.9 million over the comparable 2004 period, reflecting
increased sales of electricity. Total retail megawatthour sales of
electricity increased 1.6 percent in the second quarter of 2005,
compared with the same period in 2004, primarily as a result of
increases in residential and small commercial and industrial sales
of 3.7 percent and 3.2 percent, respectively. These increases were
partially offset by a 1.7 percent decrease in sales to large
commercial and industrial customers during the second quarter of
2005. The retail sales growth was principally due to warmer weather
in June 2005 and an increase in the number of customers served.
Increased revenues in the second quarter of 2005 from the sale of
utility services to commercial and municipal customers also
contributed approximately $500,000 to retail revenue growth, when
compared to the same period last year. Wholesale revenues in the
second quarter of 2005 decreased by $1.8 million compared with the
second quarter of 2004. Wholesale purchases of electricity declined
by a similar amount. The Company does not expect the decline in
these low-margin wholesale sales to adversely affect the Company's
earnings in 2005. In the second quarter of 2005, power supply
expenses decreased $2.6 million compared with the same quarter of
2004, primarily due to a $1.8 million decrease in purchases of
electricity for resale, increased deliveries of lower priced energy
under one of our power supply contracts and lower unit prices under
our contract to purchase energy from the Vermont Yankee nuclear
power plant, offset in part by higher expenses to meet increased
customer demand for electricity. Other operating expenses increased
by $596,000, or seven cents per share, in the second quarter of
2005, compared with the same quarter in 2004, reflecting increased
expenses from the sale of utility services to commercial and
municipal customers and increased regulatory commission expenses.
Transmission expenses increased by approximately $430,000, reducing
earnings per share by five cents in the second quarter of 2005
compared with the same period last year, reflecting an increase in
charges allocated for system support in New England by the ISO New
England, and additional transmission investment by VELCO, which
owns and operates transmission systems in Vermont for all Vermont
utilities. Depreciation and amortization expenses increased by
approximately $270,000 or three cents per share in the second
quarter of 2005 as a result of increased investment in utility
plant and increased amortization of regulatory assets, when
compared with the same period during 2004. Other income decreased
by approximately $239,000 or three cents per share in the second
quarter of 2005, compared with the same period last year,
reflecting sales of non-utility property in 2004. "We're very
pleased with our present outlook. We maintain investment grade
credit ratings, our cash flow and earnings projections for 2005 are
solid, and most importantly, customer satisfaction measurements
remain strong," said Mr. Dutton. "All of these factors should allow
us to increase dividends in 2006, as we have during each of the
past several years." -0- *T Green Mountain Power Corporation in
thousands except per share amounts Quarterly Earnings Summary Three
Months Six months Ended ended June 30 June 30 2005 2004 2005 2004
------------------------------------------- Retail revenues $50,870
$49,008 $105,291 $103,613 Wholesale revenues 4,018 5,860 7,846
14,778 -------- -------- --------- --------- Total operating
revenues $54,888 $54,868 $113,137 $118,391 -------- --------
--------- --------- Net income $2,381 $1,782 $5,361 $5,515 Net
income applicable to common stock 2,381 1,782 5,361 5,515 Net
income-continuing operations 2,384 1,783 5,367 5,522 Net
income(loss)- discontinued operations (3) (1) (6) (7) Basic
earnings per share- continuing operations $0.46 $0.35 $1.04 $1.09
Basic earnings(loss) per share-discontinued operations - - - -
-------- -------- --------- --------- Basic earnings per Common
share $0.46 $0.35 $1.04 $1.09 ======== ======== ========= =========
Diluted earnings per share- continuing operations $0.45 $0.34 $1.02
$1.06 Diluted earnings(loss) per share-discontinued operations - -
- - -------- -------- --------- --------- Fully diluted earnings
per common share $0.45 $0.34 $1.02 $1.06 ======== ========
========= ========= Dividends declared per share $0.25 $0.22 $0.50
$0.44 Weighted average shares of common stock outstanding- Basic
5,186 5,072 5,173 5,058 Weighted average shares of common stock
outstanding- Diluted 5,271 5,228 5,261 5,219 *T There are
statements in this information release that contain projections or
estimates and that are considered to be "forward-looking" as
defined by the Securities and Exchange Commission (the "SEC"). In
these statements, you may find words such as believes, expects,
plans, or similar words. These statements are not guarantees of our
future performance. There are risks, uncertainties and other
factors that could cause actual results to be different from those
projected. -- 30 -- For further information, please contact Robert
Griffin, Chief Financial Officer of Green Mountain Power, (802)
655-8452 or Stephen C. Terry, Sr. Vice President - Corporate &
Legal Affairs, (802) 655-8408. x
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