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FOLSOM, N.J. -- South Jersey Industries
(NYSE:
SJI) announced record earnings from continuing operations
of $1.68 per share for the six months ended June 30, 2000 compared
with $1.66 per share for the same period last year. Earnings from
continuing operations for the second quarter 2000 were breakeven
and consistent with the same period last year. Discontinued operations
reduced SJI's consolidated earnings per share by $0.01 in the
most-recent quarter, consistent with 1999's performance, and by
$0.02 per share for the first six months of 2000 compared with
$0.01 last year.
"Strong performance by our non-utility operations continues to exceed our expectations," said SJI Chairman Charles Biscieglia. "We eliminated losses in the second quarter through South Jersey Energy's contribution. Traditionally, we show a loss in this quarter as natural gas use by utility customers of our principal subsidiary, South Jersey Gas, diminishes due to seasonally warmer weather."
SJI primarily attributes the record performance to its to its non-utility business, South Jersey Energy. Net income at South Jersey Energy almost tripled to $2.1 million for the first six months of 2000 compared with $0.7 million for 1999. For the second quarter of 2000, South Jersey Energy's net income increased 33 percent over the prior year period, to $665,000.
Contributing to South Jersey Energy's improved performance for both periods were strong retail sales growth for natural gas supplies and increased activities in the environmental air monitoring business. Six month results were also aided by efficient management of wholesale natural gas supply portfolios during the first quarter of the year.
Results at South Jersey Gas for the six month period were flat. Over the last 12 months, the company increased its customers base by 7,094 and began recovering carrying costs on certain unrecovered fuel and environmental remediation expenses through rates. However, these achievements were offset by increased interest and depreciation expenses and costs associated with increasing meter reading frequency from bimonthly to monthly. The increased meter reading frequency is part of the company's ongoing efforts to improve customer service. Net income for the quarter was additionally impacted by reduced off-system natural gas sales income. The reduction was timing related as South Jersey Gas recognized the income in the first quarter of 2000.
South Jersey Industries is an energy services holding company for South Jersey Gas and South Jersey Energy. Information about SJI may be found at http://www.sjindustries.com on the Internet.
This release contains forward-looking statements about SJI's financial performance. The statements are made in good faith and deemed reasonable at the date of this release. Actual results may vary and SJI encourages you to conduct your own research before making any investment decisions including a review of SJI's Annual Report to Shareholders and SEC Form 10K for a complete discussion of risks and/or uncertainties that may cause actual results to vary.