South Jersey Industries Reports Earnings For Retail Energy Marketing Segment
May 9, 2019 Email This Story Copyright 2010-19 EnergyChoiceMatters.com
Reporting by Paul Ring • email@example.com
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South Jersey Industries (SJI) reported earnings for the first quarter ended March 31, 2019
SJI's Energy Group segment includes its non-regulated operations engaged in fuel supply management services, wholesale gas marketing, and retail energy marketing.
First quarter 2019 GAAP earnings for the Energy Group segment were a loss of $1.9 million compared with income of $52.5 million in 2018. First quarter 2019 economic earnings for the Energy Group segment were $7.6 million compared with $35.9 million in 2018.
Retail marketing contributed first quarter 2019 economic earnings of $0.3 million to the Energy Group segment compared with a loss of $0.1 million in 2018, driven by the previously reported sale of SJI's retail gas marketing business in December 2018 to UGI Energy Services as part of a shift in business strategy.
Specifically, for retail energy supplier South Jersey Energy Company, the net income contribution from South Jersey Energy Company for the three months ended March 31, 2019 increased $3.4 million to a net loss of $0.6 million, compared to the same period in 2018, primarily due to the retail gas operations at South Jersey Energy Company contributing a $3.2 million net loss during the three months ended March 31, 2018. As previously reported, this retail natural gas business was sold on November 30, 2018.
Revenues from retail electric operations at South Jersey Energy Company, net of intercompany transactions, decreased $21.2 million, or 49.5%, to $21.6 million for the three months ended March 31, 2019 compared with the same period in 2018, primarily due to lower average LMP per megawatt hour and lower overall sales volumes.
Gross margin from South Jersey Energy Company's retail electric operations decreased $1.2 million to a loss of $0.6 million for the three months ended March 31, 2019 compared with the same period in 2018, resulting from the change in unrealized gains and losses recorded on forward financial contracts due to price volatility, which is excluded for Economic Earnings and represented a total decrease of $1.1 million.