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Telephone: 609-561-9000
Investor Relations Contact: Stephen Clark x4260
Public Relations Contact: Joanne Brigandi x424
September 19 , 2005
South Jersey Industries Ranks Among Top 20 Energy Companies in the U.S.
Folsom, NJ
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According to the Fortnightly, readers have asked for an analysis that truly communicates value to future investors, future owners, energy asset operators, regulators and consumers. With that aim, the Fortnightly selected the top 40 companies from the nation’s electric and gas utilities, pipelines and distribution companies. Rankings consider profit margin, dividend yield, free-cash flows as a percentage of revenue, return on equity and return on assets over a 3-year period. But the analysis didn’t stop there. An emphasis was placed on growth, current and prospective. Most utility executives told the Fortnightly that it shouldn’t be enough to pay a large dividend and then go home. There must be a viable business with evidence of future growth.
Edward J. Graham, SJI’s chairman and CEO stated, “SJI’s success over the past three years is the result of a well-planned and effectively implemented strategy, developed by our senior management team and board of directors. The business model that drives SJI’s performance keys upon our core utility and is a natural extension of that business. Focusing on core competencies, rather than diversifying into areas where we have little experience, separates SJI from many other energy companies.”
SJI’s overarching goals are to produce earnings per share growth that averages at least 6% to 7% annually; to increase its dividend by 3% to 6% annually; and, to maintain a low to moderate risk profile. As Fortnightly’s rankings indicate, SJI has a track record for meeting or exceeding those goals.
Like many of the top companies who were able to capitalize upon the energy industry’s restructuring, over the past several years SJI has generated significant incremental earnings from its energy and energy service businesses. The company has seized upon appropriate opportunities to grow its unregulated businesses in areas such as cogeneration, retail energy sales and industrial customer energy portfolio management and administration.
The combination of a rapidly growing utility customer base and growing, profitable non-utility businesses has produced 6 consecutive years of record earnings for SJI. Graham further explained, “We’ve successfully accomplished our goals by remaining focused on energy, capitalizing on a strong regional presence and solid reputation, and maintaining the low to moderate risk platform articulated in our strategic plan. Going forward we expect these strategies to serve us well, enabling us to stretch and grow to continue meeting our goals.” -
South Jersey Industries (NYSE:SJI) is an energy services holding company for South Jersey Gas, South Jersey Energy, South Jersey Resources Group, South Jersey Energy Service Plus and Marina Energy. Visit http://www.sjindustries.com for more information about SJI and its subsidiaries.
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