2008-07-24 15:23:00
NSTAR Reports Second Quarter Results for 2008
BOSTON, Mass.–(EMWNews)–NSTAR (NYSE: NST) today reported earnings of $50.4 million, or $0.47 per
common share, for the second quarter of 2008, compared to $50.1 million,
or $0.47 per share reported for the same period in 2007.
Chairman, President and Chief Executive Officer Thomas J. May said, “We
are on track for another positive year—delivering
superior service to customers and achieving excellent financial results
for our shareholders.”
May added, “Recently, the Governor signed new
energy legislation into law that places significant importance on
developing renewable energy resources and energy efficiency programs in
Massachusetts. Our NSTAR Green program and our longstanding commitment
to energy efficiency programs are consistent with the new legislation.
Our award-winning energy savings programs are integral parts of our
efforts to lower energy costs for customers and reduce reliance on
fossil fuels.”
May continued, “Just last week, the
Massachusetts Department of Public Utilities issued a rate decision that
will begin the process of decoupling electric and natural gas rates from
sales volume. Decoupling will allow utility companies to carry out the
provisions of the new energy legislation while at the same time allow
utilities to collect an adequate level of revenues to maintain the
quality and reliability of electric and gas service. The Department
ruled that existing rate plans can continue until the end of their term
and utilities can recover lost base revenues and incentives from
incremental energy efficiency spending.”
Factors that impacted earnings for the quarter included an increase in
transmission revenues, higher electric distribution revenues, and lower
interest costs. NSTAR experienced a 0.2% increase in electric sales for
the quarter. Fully offsetting these positive items were increases in
operations and maintenance costs, depreciation and property taxes, and
lower gas sales.
The company also reported diluted earnings of $1.02 per share for the
six-month period ended June 30, 2008, compared to $0.91 per share for
the same six-month period last year. Factors that drove results for the
first half of the year included higher electric distribution and
transmission revenues, higher earnings from unregulated businesses and
lower interest costs. Partially offsetting these positive items were
higher operations and maintenance costs, higher depreciation and
property taxes, and lower gas sales. Year-to-date electric sales were up
0.7% while sales of natural gas were down 3.4%.
NSTAR also reaffirms its 2008 earnings guidance of between $2.16 per
share and $2.26 per share.
Comparative unaudited results for the three, six and twelve-month
periods were as follows:
Financial Data (in thousands, except per share data)
Three months ended June 30: |
|
2008 |
|
2007 |
|
% Change |
|
|||
Operating revenues |
$ |
743,715 |
$ |
725,135 |
2.6 |
% |
||||
Net income |
$ |
50,369 |
$ |
50,100 |
0.5 |
% |
||||
Earnings per basic and diluted share |
$ |
0.47 |
$ |
0.47 |
– |
% |
||||
Weighted average number of shares: |
||||||||||
Basic |
106,808 |
106,808 |
– |
% |
||||||
Diluted |
107,038 |
107,148 |
(0.1 |
) |
% |
|||||
Dividends paid per common share |
$ |
0.35 |
$ |
0.325 |
7.7 |
% |
Six months ended June 30: |
|
2008 |
|
2007 |
|
% Change |
|
|||
Operating revenues |
$ |
1,639,296 |
$ |
1,709,513 |
(4.1 |
) |
% |
|||
Net income |
$ |
109,605 |
$ |
97,920 |
11.9 |
% |
||||
Earnings per share:
Basic |
$ |
1.03 |
$ |
0.92 |
12.0 |
% |
||||
Diluted |
$ |
1.02 |
$ |
0.91 |
12.1 |
% |
||||
Weighted average number of shares: |
||||||||||
Basic |
106,808 |
106,808 |
– |
% |
||||||
Diluted |
107,024 |
107,153 |
(0.1 |
) |
% |
|||||
Dividends paid per common share |
$ |
0.70 |
$ |
0.65 |
7.7 |
% |
Twelve months ended June 30: |
|
2008 |
|
2007 |
|
% Change |
|
|||
Operating revenues |
$ |
3,191,567 |
$ |
3,467,859 |
(8.0 |
) |
% |
|||
Net income |
$ |
233,200 |
$ |
214,981 |
8.5 |
% |
||||
Earnings per basic and diluted share |
$ |
2.18 |
$ |
2.01 |
8.5 |
% |
||||
Weighted average number of shares: |
||||||||||
Basic |
106,808 |
106,808 |
– |
% |
||||||
Diluted |
107,060 |
107,191 |
(0.1 |
) |
% |
|||||
Dividends paid per common share |
$ |
1.35 |
$ |
1.255 |
7.6 |
% |
More detailed financial information will be provided in NSTAR’s
Quarterly Report on Form 10-Q that is expected to be filed with the
Securities and Exchange Commission on August 1, 2008.
Second Quarter Conference Call
NSTAR is holding a conference call to discuss its second quarter results
on Friday, July 25, 2008 at 9:00 a.m. (Eastern Time). The call is being
webcast and can be accessed on NSTAR’s
corporate website—www.nstar.com—by
clicking on “Investor Relations”
and then selecting the webcast icon. A replay of the call will be
archived on NSTAR’s corporate website in the
Investor Relations section under “Webcast
Archives.”
Forward-Looking Statements
This earnings release may contain forward-looking statements within the
meaning of the Securities Act of 1933 and the Securities Exchange Act of
1934. These statements are based on the current expectations, estimates
or projections of management, and are not guarantees of future
performance. Actual results could differ materially from these
statements.
Examples of some important factors that could cause our actual results
or outcomes to differ materially from those discussed in the
forward-looking statements include, but are not limited to, the
following: weather conditions; future economic conditions in the
regional and national markets; prices and availability of operating
supplies; prevailing governmental policies and regulatory actions
(including those of the Massachusetts Department of Public Utilities and
the Federal Energy Regulatory Commission) with respect to allowed rates
of return, rate structure, continued recovery of regulatory assets and
energy costs, financings, municipalization acquisition and disposition
of assets, operation and construction of facilities, changes in tax laws
and policies and changes in, and compliance with, environmental and
safety laws and policies; new governmental regulations or changes to
existing regulations that impose additional operating requirements or
liabilities; changes in specific hazardous waste site conditions and the
specific cleanup technology; changes in available information and
circumstances regarding legal issues and the resulting impact on our
estimated litigation costs; the impact of conservation measures and
self-generation by our customers; the impact of service quality
performance measures; and the impact of terrorist acts.
Any forward-looking statement speaks only as of the date of this
earnings release, and NSTAR undertakes no obligation to publicly update
forward-looking statements. Other factors in addition to those listed
here could also adversely affect NSTAR. You are advised, however, to
consult any further disclosures we make on related subjects in our
reports to the Securities and Exchange Commission.
Profile
NSTAR, headquartered in Boston, is an energy delivery company with
revenues of approximately $3.2 billion and assets of $7.7 billion that
serves 1.4 million customers in Massachusetts, including approximately
1.1 million electric distribution customers in 81 communities and
300,000 natural gas distribution customers in 51 communities. NSTAR also
conducts non-utility, unregulated operations. For more information, go
to www.nstar.com.
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