Superior Plus Retail Supply Business Lifted by Improved Pricing, Operational Results

Superior Plus' fixed-price energy services business generated gross profits of $9.5 million for the third quarter of 2011, compared to $6.9 million in the prior year quarter (all figures Canadian).

Natural gas gross profit was $7.8 million, versus $5.9 million a year ago, on higher margins offset in part by lower volumes.

Gross profit per unit was $1.529 per gigajoules (GJ), up from the year-ago 85.5 cents per GJ.

The increase in natural gas gross margin was due to increased residential renewal margins from favorable pricing, higher transportation revenue, lower transportation costs, and lower charges associated with load balancing.

Sales volumes of natural gas were 5.1 million GJ, down from 6.9 million GJ a year ago, due to a continued decline in residential volumes as a result of focusing marketing efforts towards the commercial segment.

Electricity gross profit in the third quarter of 2011 was $1.7 million, up from $1.0 million a year ago, due to the aggregation of additional commercial customers in the Ontario market and higher customer demand.

Superior Plus said that its fixed-price energy services business continues to grow in the newly entered Pennsylvania electricity market after launching a residential electricity offering that is being sold to existing heating oil and propane customers.

Electric gross profit per unit was $10.0/MWh, down from $11.6/MWh a year ago. Volumes were 176.5 GWh, up from 86.2 GWh a year ago.