Unitil reports 2Q loss

Monday, January 10, 2011

Unitil Inc. lost $2.1 million in the second quarter of 2010, compared to barely breaking even in the same quarter a year earlier, thanks primarily to a warm spring and larger interest payments, according to the company's quarterly filing with the Securities and Exchange Commission.

The results translate into a 19-cents per-share loss, though for the first half of the year the company's net income was $4.4 million, or 3 cents a share. That’s a decrease from the $9.3 million net gain for the first half of 2009.

Electricity sales were up a bit but so were interest payments, thanks to the company’s issuance of some $40 million in long-term debt. The company spent $800,000 more in interest in the second quarter of 2010 than it did the same quarter in 2009.

The Hampton-based utility hopes its profit margin will go up next year, thanks to a number of filings with state and federal regulators to increase rates.

The state Public Utilities Commission approved a $5.2 million increase in an electric case, including recovering costs from the 2008 ice storm. And a decision from the Federal Energy Regulatory Commission for an increase of $3 million in natural gas revenues means annual revenues are expected to rise in January.
The gas division is also asking for a rate surcharge to recover some $12.7 million during the three-year period of 2011-13.

In the filing, the company also disclosed the amount it spent on costs associated with the windstorm of February 2010: $7.2 million. In June, the company included those costs under its annual reconciliation and rate filing. That matter is still pending. -- BOB SANDERS/NEW HAMPSHIRE BUSINESS REVIEW

NOTICE: Effective January, 2012, we have converted our commenting system to Facebook. For more information read our updated Comment Policy