Green MT Power (NYSE:GMP)
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Green Mountain Power Corporation (NYSE: GMP) today
announced consolidated earnings of $0.68 per share of common stock,
diluted, for the first quarter of 2006, compared with consolidated
earnings of $0.56 per share, diluted, for the same period in 2005.
"First quarter earnings reflected the sale of excess energy into a
strong wholesale market that offset the impact of reduced retail sales
to customers," said Christopher L. Dutton, President and Chief
Executive Officer. "Gross margins improved as we managed our power
portfolio well, selling excess power while wholesale market prices
were high. We expect diluted earnings per share from continuing
operations for 2006 to range between $2.00 and $2.19, about flat
compared with the previous year."
Company operating revenues increased by $2.7 million while power
supply expenses increased by $86,000 in the first quarter of 2006
compared with the same period last year. The increase in operating
revenues resulted from the sale of excess electricity at prices above
our underlying costs to purchase or generate the energy. The Company's
power supply resources exceeded customer demand during the first
quarter of 2006 due to an unusually mild and wet winter and because
the Company elected to exercise contract rights to increase deliveries
at below market prices from one of its suppliers during 2006. The
minimal increase in power supply costs in 2006 resulted from added
precipitation-based production by Company hydro power plants (which
produced low-cost electricity) that replaced higher priced market
purchases made during the first quarter of 2005, and offset most of
the increased costs from other energy contracts in 2006.
Total operating revenues increased by $2.7 million in the first
quarter of 2006, compared with the same period last year, as a $3.2
million increase in wholesale revenues was offset slightly by a
$470,000 decrease in retail revenues. Wholesale revenues increased
because the Company sold the excess supplies discussed above in the
wholesale energy market. The Company sold some of its expected energy
deliveries for March 2006 late last year when prices were very high,
which added an estimated $0.12 to earnings in the first quarter of
2006. Retail revenues declined, reflecting reduced residential and
commercial/industrial sales of electricity that decreased by 2.6% when
compared to the same period in 2005 as a result of the mild winter.
The decrease in retail revenues was partially offset by a 0.9 percent
rate increase previously authorized by the Vermont Public Service
Board that generated $500,000 in additional revenues during 2006.
In the first quarter of 2006, power supply expenses increased by
$86,000 compared with the first quarter of 2005. Additional purchases
from independent power producers and under our contract entitlements
in 2006 were offset by greater production from Company-owned hydro
facilities that replaced energy purchased in the wholesale energy
markets during 2005.
Increased transmission and other operating expenses in 2006 offset
some of the benefits of higher gross margins (revenues less power
supply expenses) in 2006, compared with 2005. Transmission expenses
increased by $759,000 during the first quarter of 2006 compared with
the first quarter of 2005 due to increases in Vermont transmission
investment and in our share of Vermont transmission expenses because
our loads have increased relative to other Vermont utilities. Other
operating expenses increased $575,000 in the first quarter of 2006
compared with the same period last year as a result of higher
distribution and customer account expenses.
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*T
Green Mountain Power Corporation Quarterly Earnings Summary
Three Months Ended
March 31
2006 2005
------------------- -------------
in thousands except per share amounts
Retail revenues $53,950 $54,420
Wholesale revenues 7,026 3,828
------------------- -------------
Total operating revenues $60,976 $58,248
------------------- -------------
Net income $3,612 $2,979
Net income-continuing operations 3,536 2,981
Net income(loss)-discontinued
operations 76 (2)
Basic earnings per share-continuing
operations $0.68 $0.58
Basic earnings per share-discontinued
operations 0.01 -
------------------- -------------
Basic earnings per Common share $0.69 $0.58
=================== =============
Diluted earnings per share-continuing
operations $0.67 $0.56
Diluted earnings per share-
discontinued operations 0.01 -
------------------- -------------
Fully diluted earnings per common
share $0.68 $0.56
=================== =============
Dividends declared per share $0.28 $0.25
Weighted average shares of common
stock outstanding-Basic 5,243 5,160
Weighted average shares of common
stock outstanding-Diluted 5,319 5,301
*T
Certain statements in this press release may be forward-looking in
nature, or "forward-looking" statements as defined in the United
States Securities Litigation Reform Act of 1995. Actual results may
differ from those expressed or implied in forward-looking statements.
The forward-looking statements contained in this press release are
subject to a number of factors and uncertainties, including regulatory
and judicial decisions or legislation, changes in regional market and
transmission rules, energy supply and demand and pricing, contractual
commitments, availability, terms and use of capital, general economic
and business environment, changes in technology, nuclear and
environmental issues, industry restructuring and cost recovery
(including stranded costs, and weather), and other factors and
uncertainties disclosed from time to time in our filings with the
Securities and Exchange Commission. Any forward-looking statements in
this press release should be evaluated in light of these important
factors and uncertainties. The Company disclaims any obligation to
update any information in this press release.