05:55 AM EST, 11/08/2019 (MT Newswires) -- Chesapeake Utilities (CHK) reported a modest rise in earnings from continuing operations in third-quarter results published after markets closed on Thursday as the company said that it benefited from increased gross margins.
The Dover, Del.-based company generated earnings per share from continuing operations of $0.38 in the three months ended Sept. 30, up one cent from the corresponding quarter of the prior year. Analysts' estimates were not immediately available for comparison.
The company said that the rise was buoyed by a higher gross margin from pipeline expansion projects, organic growth in the natural gas distribution operations and greater retail propane margins per gallon. These increases were, however, largely offset by a jump in operating expenses and higher interest expense associated with financing the company's expansion projects.
The company, which exited the natural gas marketing business and announced the sale of its natural gas marketing subsidiary Peninsula Energy Services Company in October, generated total operating revenue of $92.6 million, down from $93.4 million a year earlier. Total operating expense declined to $78.3 million from $80.5 million in the corresponding quarter of the prior year.
"For the first nine months of 2019, we have delivered strong financial performance largely driven by new pipeline expansions, organic growth, key regulatory initiatives and contributions from the Marlin Gas Transport and Ohl acquisitions," Jeffrey Householder, chief executive of Chesapeake Utilities, said.
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