Green MT Power (NYSE:GMP)
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From Oct 2019 to Oct 2024
Green Mountain Power Corporation (NYSE: GMP) today announced
consolidated earnings of $0.54 per share of common stock, diluted, for
the third quarter of 2006 compared with consolidated earnings of $0.48
per share of common stock, diluted, for the same period in 2005. Year to
date earnings for 2006 are $1.60 per share, diluted, compared
with earnings of $1.50 per share, diluted, for the first nine months of
2005.
Earnings increased in the third quarter of 2006 primarily as a result of
lower power supply costs and transmission expenses, which were partially
offset by a reduction in retail revenues of $3.3 million consistent with
a restriction on earnings required in the rate agreement approved by the
Vermont Public Service Board in 2003 in the Company’s
last retail rate case. This earnings restriction calculation is reviewed
by the Vermont Public Service Board and is subject to change.
The Company’s regulated earnings are capped at
its allowed rate of return on equity of 10.5 percent for 2006. Costs
that are not allowed for rate setting purposes reduce the Company’s
earning potential under the rate agreement and limit the Company’s
ability to achieve its allowed rate of return on equity for its
operations as a whole. “Despite the recording
of this earnings restriction reserve in the third quarter of 2006 and an
additional reserve anticipated at year end, we expect our earnings per
share for the year to range between $2.00 and $2.15,”
said Christopher L. Dutton, President and Chief Executive Officer.
Retail operating revenues for the third quarter of 2006 decreased by
$3.0 million compared with the same period in 2005, reflecting the
effects of the $3.3 million restriction on earnings and milder summer
weather. This was partially offset by an increase in sales of utility
services to other municipalities and utilities, a 0.9 percent rate
increase that took effect in January 2006 and an increase in the number
of customers. Total retail megawatt hour sales of electricity decreased
by 3.9 percent in the third quarter of 2006 compared with the same
period in 2005. Sales to residential, small commercial and industrial,
and large commercial and industrial customers decreased by 3.6, 4.8 and
3.2 percent, respectively, compared with the third quarter in 2005,
which was affected by last year’s unusually
hot weather. Increased revenues from the sale of utility services to
other utilities and large industrial customers in the third quarter of
2006 contributed approximately $1.7 million more to retail revenue
growth than the same period last year. Other operating expenses
increased by $1.9 million in the third quarter of 2006, reflecting an
increase of $1.3 million in utility services expense, compared with the
third quarter of 2005. These sales of services are intended to allow the
Company to recover some of its administrative and general and staffing
costs from other parties and ultimately reduce costs to retail
customers. The remaining $600,000 increase in other operating expenses
related to additional costs associated with the proposed acquisition of
the Company by Northern New England Energy Corporation, an affiliate of
GazMétro Limited Partnership, and an increase
in employee benefits.
Power supply expenses decreased by $4.3 million in the third quarter of
2006 compared with the same period last year. Increased 2006
entitlements to power under a long-term contract with Hydro-Quebec and a
temporary increase in the Company’s
entitlement from the Vermont Yankee nuclear power plant reduced the
Company’s reliance on wholesale market
purchases of electricity. The additional 2006 entitlements under the
Hydro-Quebec contract and the Vermont Yankee output were purchased, on
average, at prices below the wholesale market price for the third
quarter of 2006 and substantially below 2005 wholesale market prices.
Market prices for Company purchases in the third quarter of 2006 were
substantially lower than 2005, reflecting the interruption of gas
supplies in the Gulf caused by hurricane activity coupled with warmer
than normal summer temperatures in 2005.
Transmission expenses decreased by $1.1 million in the third quarter
compared to the same period last year, primarily as a result of regional
transmission credits from ISO New England to VELCO.
Income tax expense increased by $600,000 in the third quarter of 2006
compared to the third quarter of 2005 due to an increase in pretax book
income and an increase in the effective tax rate due to nondeductible
merger expenses, which were partially offset by a decrease in the
Vermont state income tax rate.
Green Mountain Power Corporation
Quarterly Earnings Summary
Three Months Ended
Nine months
ended
September 30
September 30
2006
2005
2006
2005
in thousands except per share amounts
Retail revenues
$ 54,615
$ 57,584
$ 160,242
$ 162,874
Wholesale revenues
6,818
6,740
21,547
14,586
Total operating revenues
$ 61,433
$ 64,324
$ 181,789
$ 177,460
Net income
$ 2,884
$ 2,542
$ 8,522
$ 7,902
Net income-continuing operations
2,831
2,524
8,393
7,900
Net income(loss)-discontinued operations
53
18
129
2
Basic earnings per share-continuing operations
$ 0.54
$ 0.49
$ 1.60
$ 1.52
Basic earnings per share-discontinued operations
0.01
-
0.02
-
Basic earnings per common share
$ 0.55
$ 0.49
$ 1.62
$ 1.52
Diluted earnings per share-continuing operations
$ 0.53
$ 0.48
$ 1.58
$ 1.50
Diluted earnings per share-discontinued operations
0.01
-
0.02
-
Fully diluted earnings per common share
$ 0.54
$ 0.48
$ 1.60
$ 1.50
Dividends declared per share
$ 0.28
$ 0.25
$ 0.84
$ 0.75
Weighted average shares of common stock outstanding-Basic
5,280
5,208
5,261
5,185
Weighted average shares of common stock outstanding-Diluted
5,362
5,301
5,338
5,284
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.
Green Mountain Power Corporation (NYSE: GMP) today announced
consolidated earnings of $0.54 per share of common stock, diluted, for
the third quarter of 2006 compared with consolidated earnings of $0.48
per share of common stock, diluted, for the same period in 2005. Year
to date earnings for 2006 are $1.60 per share, diluted, compared with
earnings of $1.50 per share, diluted, for the first nine months of
2005.
Earnings increased in the third quarter of 2006 primarily as a
result of lower power supply costs and transmission expenses, which
were partially offset by a reduction in retail revenues of $3.3
million consistent with a restriction on earnings required in the rate
agreement approved by the Vermont Public Service Board in 2003 in the
Company's last retail rate case. This earnings restriction calculation
is reviewed by the Vermont Public Service Board and is subject to
change.
The Company's regulated earnings are capped at its allowed rate of
return on equity of 10.5 percent for 2006. Costs that are not allowed
for rate setting purposes reduce the Company's earning potential under
the rate agreement and limit the Company's ability to achieve its
allowed rate of return on equity for its operations as a whole.
"Despite the recording of this earnings restriction reserve in the
third quarter of 2006 and an additional reserve anticipated at year
end, we expect our earnings per share for the year to range between
$2.00 and $2.15," said Christopher L. Dutton, President and Chief
Executive Officer.
Retail operating revenues for the third quarter of 2006 decreased
by $3.0 million compared with the same period in 2005, reflecting the
effects of the $3.3 million restriction on earnings and milder summer
weather. This was partially offset by an increase in sales of utility
services to other municipalities and utilities, a 0.9 percent rate
increase that took effect in January 2006 and an increase in the
number of customers. Total retail megawatt hour sales of electricity
decreased by 3.9 percent in the third quarter of 2006 compared with
the same period in 2005. Sales to residential, small commercial and
industrial, and large commercial and industrial customers decreased by
3.6, 4.8 and 3.2 percent, respectively, compared with the third
quarter in 2005, which was affected by last year's unusually hot
weather. Increased revenues from the sale of utility services to other
utilities and large industrial customers in the third quarter of 2006
contributed approximately $1.7 million more to retail revenue growth
than the same period last year. Other operating expenses increased by
$1.9 million in the third quarter of 2006, reflecting an increase of
$1.3 million in utility services expense, compared with the third
quarter of 2005. These sales of services are intended to allow the
Company to recover some of its administrative and general and staffing
costs from other parties and ultimately reduce costs to retail
customers. The remaining $600,000 increase in other operating expenses
related to additional costs associated with the proposed acquisition
of the Company by Northern New England Energy Corporation, an
affiliate of GazMetro Limited Partnership, and an increase in employee
benefits.
Power supply expenses decreased by $4.3 million in the third
quarter of 2006 compared with the same period last year. Increased
2006 entitlements to power under a long-term contract with
Hydro-Quebec and a temporary increase in the Company's entitlement
from the Vermont Yankee nuclear power plant reduced the Company's
reliance on wholesale market purchases of electricity. The additional
2006 entitlements under the Hydro-Quebec contract and the Vermont
Yankee output were purchased, on average, at prices below the
wholesale market price for the third quarter of 2006 and substantially
below 2005 wholesale market prices. Market prices for Company
purchases in the third quarter of 2006 were substantially lower than
2005, reflecting the interruption of gas supplies in the Gulf caused
by hurricane activity coupled with warmer than normal summer
temperatures in 2005.
Transmission expenses decreased by $1.1 million in the third
quarter compared to the same period last year, primarily as a result
of regional transmission credits from ISO New England to VELCO.
Income tax expense increased by $600,000 in the third quarter of
2006 compared to the third quarter of 2005 due to an increase in
pretax book income and an increase in the effective tax rate due to
nondeductible merger expenses, which were partially offset by a
decrease in the Vermont state income tax rate.
-0-
*T
Green Mountain Power Corporation Quarterly Earnings Summary
Three Months Nine months
Ended ended
September 30 September 30
2006 2005 2006 2005
-------- -------- --------- ---------
in thousands except per share amounts
Retail revenues $54,615 $57,584 $160,242 $162,874
Wholesale revenues 6,818 6,740 21,547 14,586
-------- -------- --------- ---------
Total operating revenues $61,433 $64,324 $181,789 $177,460
-------- -------- --------- ---------
Net income $2,884 $2,542 $8,522 $7,902
Net income-continuing operations 2,831 2,524 8,393 7,900
Net income(loss)-discontinued
operations 53 18 129 2
Basic earnings per share-
continuing operations $0.54 $0.49 $1.60 $1.52
Basic earnings per share-
discontinued operations 0.01 - 0.02 -
-------- -------- --------- ---------
Basic earnings per common share $0.55 $0.49 $1.62 $1.52
======== ======== ========= =========
Diluted earnings per share-
continuing operations $0.53 $0.48 $1.58 $1.50
Diluted earnings per share-
discontinued operations 0.01 - 0.02 -
-------- -------- --------- ---------
Fully diluted earnings per common
share $0.54 $0.48 $1.60 $1.50
======== ======== ========= =========
Dividends declared per share $0.28 $0.25 $0.84 $0.75
Weighted average shares of common
stock outstanding-Basic 5,280 5,208 5,261 5,185
Weighted average shares of common
stock outstanding-Diluted 5,362 5,301 5,338 5,284
*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.