CH Energy Group, Inc. Earnings Continue to Grow.Business Editors POUGHKEEPSIE, N.Y.--(BUSINESS WIRE)--Oct. 20, 2000 CH Energy Group, Inc. (NYSE NYSE See: New York Stock Exchange :CHG CHG Change CHG Charge CHG Changed CHG Chlorhexidine Gluconate (aka chloraprep) CHG Centre Hospitalier Général (French: general hospital) CHG Come Holy Ghost (Catholicism) ) announced today that its third- quarter earnings were 13 percent above those of 1999's third quarter, and that earnings year to date are also exceeding those of last year. The Company posted third-quarter earnings at 87 cents, as compared to 1999's third-quarter earnings of 77 cents; earnings for the first nine months were reported as $2.41 -- 4 cents higher than those for the same period of 1999. During the third quarter, the Company's competitive business units contributed 9 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , an increase of 4 cents over the same quarter in 1999. "Clearly, this was our most dynamic and successful quarter since the formation of CH Energy Group in December of 1999," said Chairman, President and Chief Executive Officer Paul J. Ganci. "The announced sale of our share of our electric generating plants, the acquisition of a Washington, D.C.-based oil firm, and the steady growth of our competitive business units -- when combined with the continued stability of our utility business -- all resulted in a positive impact on earnings." In August, the Company announced the sale of its Roseton and Danskammer fossil-fuel electric generating plants as part of the deregulation Deregulation The reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry. Notes: Traditional areas that have been deregulated are the telephone and airline industries. of New York's electric utility industry. "Importantly, the sale agreement includes a Transition Power Agreement that will add price stability for full-service Central Hudson Gas & Electric Corporation customers for the next three to four years," said Ganci. He also explained that the proceeds of the sale will be used to offset the utility's limited "stranded strand 1 n. The land bordering a body of water; a beach. v. strand·ed, strand·ing, strands v.tr. 1. To drive or run ashore or aground. 2. costs," further reducing any potential pricing impact on Central Hudson customers. In addition, the sale of the generating plants will make available substantial capital that will be redeployed to accelerate the Company's growth strategy. For example, CH Energy Group subsidiary Central Hudson Energy Services Inc. recently announced its largest planned acquisition to date: Griffith Consumers Company, a heating oil provider with 43,000 customers and a significant market share in the greater-Washington, D.C. area. "Griffith will be an excellent platform for future growth in our unregulated Adj. 1. unregulated - not regulated; not subject to rule or discipline; "unregulated off-shore fishing" regulated - controlled or governed according to rule or principle or law; "well regulated industries"; "houses with regulated temperature" 2. energy subsidiaries. It complements our strategy to specialize spe·cial·ize v. 1. To limit one's profession to a particular specialty or subject area for study, research, or treatment. 2. To adapt to a particular function or environment. in energy supply and value-added products and services, particularly for select, mid-sized customers," Ganci said. Third-Quarter Utility Results: Third-quarter electricity sales to full-service Central Hudson Gas & Electric Corporation customers decreased by 5 percent when comparing 2000 to 1999, the result of a warm summer in 1999 and cooler weather during 2000. Utility sales of natural gas increased 13 percent as compared to the same quarter of 1999. A slight (1 percent) increase in the number of customers and cooler fall weather were responsible for that increase. During the quarter, the utility's gas and electric revenues increased by nearly 15 percent, or $20 million, from $134.3 million in 1999 to $154.3 million in 2000. Total operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. for utility operations increased $19.2 million, due largely to a net increase in purchased electricity costs and the cost of fuel used in electricity production. Though fuel prices were higher compared to the previous year, utility customer bills were insulated in·su·late tr.v. in·su·lat·ed, in·su·lat·ing, in·su·lates 1. To cause to be in a detached or isolated position. See Synonyms at isolate. 2. from the increases since they are credited for profits from the Company's sales to electric wholesalers. 12 Months Ended September 30, 2000, Relative to Prior Year: Earnings per share for the year ended September 30, 2000, reflect a 3-cent increase, as compared to the 12 months ended September 30, 1999. The increase stems from higher electric and gas net revenues; a reduction in federal income taxes; and the favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. impact of non-recurring items. About CH Energy Group, Inc: CH Energy Group, Inc. is a family of companies seizing new opportunities in the competitive energy marketplace through two primary subsidiaries: Central Hudson Gas & Electric Corporation and Central Hudson Energy Services, Inc. Central Hudson Gas & Electric Corporation is a regulated electric and gas utility serving approximately 625,000 people in eight counties of New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of State's Mid-Hudson Valley. Central Hudson Energy Services, Inc. is a family of competitive businesses supplying natural gas, fuel oil, electricity and propane propane, CH3CH2CH3, colorless, gaseous alkane. It is readily liquefied by compression and cooling. It melts at −189.9°C; and boils at −42.2°C;. -- as well as a full menu of energy services -- to customers throughout the Northeast. The Corporation is headquartered in Poughkeepsie, New York, and had 1999 revenues of $522 million. |
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