Unitil attributes higher earnings to natural gas demand
Unitil Corp., which provides power to business and residential customers in Ashby, Fitchburg, Lunenburg and Townsend, reported earnings of $21.6 million for the year, and $10.3 million for the fourth quarter which ended Dec. 31, representing respective increases of $3.5 million and $1.3 million.
According to Unitil, improved earnings were driven by increases in natural gas and electric sales margins, and partially offset by higher utility operating costs.
“The continued strong demand for natural gas helped produce excellent financial results in 2013,” CEO Bob Schoenberger said in a statement. “The robust growth in our utility business is due to several factors, including favorable weather, continued investment in distribution infrastructure and recently approved electric and gas base rates. This provides a strong foundation for future growth.”
Natural gas prices have been suppressed in recent years due to robust supply, and as a result it’s become an increasingly popular power source. According to Unitil, natural gas sales margins increased $3.8 million in the fourth quarter and $9 million for the year compared to 2012, driven by higher sales, a growing customer base and higher base distribution rates.
Meanwhile, electric sales margins decreased slightly in the fourth quarter, by about $100,000, but improved by $4.3 million for the year.
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