Empire shares rise following strong 2Q

On Thursday afternoon, Empire announced earnings for the second quarter of $7.1 million, or 27 cents per share, compared with earnings in the same quarter last year of $3.2 million.

Earnings for the year ended June 30 were $29.6 million, or $1.13 per share. This compares to earnings of $21.1 million, or 82 cents per share, for the same period last year.

Empire spokeswoman Amy Bass said that increased electric rates and customer growth fueled the earnings increase.

According to the company, second-quarter revenues were higher by $7.6 million, or 8.6 percent, compared to 2005. Increased electric rates, including the Missouri Interim Energy Charge, contributed an estimated $2.4 million. Customer growth increased revenues by an estimated $2.4 million. Weather reduced revenues by $400,000. Off-system and other sales increased $2.4 million.

Total electric fuel and purchased power costs for the quarter increased by $200,000 million. Electric fuel costs decreased and natural gas volume decreased, but prices were higher. The company used more coal and paid more for the fuel.

The Missouri Public Service Commission authorized a $0.0021 kilowatt-hour IEC for Empire in March 2005. The charge allows the company to collect approximately $8.25 million each year to cover increased fuel costs.

The company would be required to issue refunds if the fuel price dipped, but Bass said that Empire’s fuel charge has been consistently higher than what the IEC will cover.

Also on Thursday, the company’s board of directors declared a quarterly dividend of 32 cents per share payable Sept. 15 to shareholders of record as of Sept. 1.

Bill Gipson, Empire’s president and CEO, will host a conference call at noon today. The presentation will be available at www.empiredistrict.com.

Analysts expected Empire to earn 14 cents per share during the second quarter. At 10:40 a.m., the company’s stock was trading at $21.91, 58 cents above Thursday’s close.[[In-content Ad]]