South Jersey Industries (SJI) Tops Q2 EPS by 3c, Revenues Beat; Offers FY20 EPS Mid-Point Guidance Above Consensus

South Jersey Industries (NYSE: SJI) reported Q2 EPS of ($0.01), $0.03 better than the analyst estimate of ($0.04). Revenue for the quarter came in at $259.96 million versus the consensus estimate of $267.06 million.

• Q2 2020 GAAP earnings of $(0.03) per diluted share compared to $(0.14) per diluted share in 2019
• Q2 2020 Economic Earnings* of $(0.01) per diluted share compared to $(0.13) per diluted share in 2019
• Second quarter results reflect increased profitability from Utility and Non-Utility operations partially offset by impact of financing activities
• COVID-19: Operations continue to function effectively; delivery of natural gas to customers has not been materially impacted; NJ regulators authorized deferral of incremental expenses including bad debt
• Continuing execution of key initiatives - completed ELK sale in July, executed infrastructure modernization programs, advanced clean energy investment, and furthered regulatory initiatives including SJG base rate case
• 2020 ongoing economic earnings affirmed $1.50-$1.60 per diluted share; SJI continues to monitor operations, market conditions and business development initiatives for future impacts to financial projections

"Our continuing priority during this challenging time remains the safety of our employees and assuring critical gas delivery to the more than 700,000 customers who depend on us each day,” said Mike Renna, SJI President and Chief Executive Officer. "I am pleased to report that our business operations continue to function effectively during the pandemic with a minimal financial impact, thanks in large part to the dedication and commitment of our exceptional 1,100 employees. As a company, we remain committed to supporting economic recovery efforts in New Jersey, addressing critical infrastructure investments to modernize our system and ensure adequate supply and system redundancy, and new clean energy investments that will lower consumption and the carbon content of natural gas in support of New Jersey's Energy Master Plan," added Renna.

GUIDANCE:

South Jersey Industries sees FY2020 EPS of $1.50-$1.60, versus the consensus of $1.52.

SJI affirms it expects 2020 ongoing economic earnings of $1.50 to $1.60 per diluted share. We are continually monitoring our operations, market conditions and business development initiatives and will communicate any future impacts to our financial projections.

Economic earnings guidance continues to primarily reflect:

• Utility operations ~75% of earnings, excluding interest costs
  • ~$500 million capital spending on growth, safety and reliability for SJG/ETG customers
  • 10,000+ new gas utility customers, reflecting 1.5% customer growth, driven by accelerated pace at ETG
  • Lower operating costs, driven by business transformation activities
  • Infrastructure modernization at SJG/ETG under existing programs
  • Execution of regulatory initiatives, including recovery of utility investment
• Non-Utility operations ~25% of earnings, excluding interest costs

◦ Energy Services: $100+ million in clean energy investment in support of EMP, and landfill exit

◦ Energy Group: Fuel management contracts, reshaped wholesale portfolio and contract expiration

◦ Midstream: AFUDC associated with PennEast Pipeline project

▪ Balance sheet strengthening, driven by asset sales and refinancing activities

For earnings history and earnings-related data on South Jersey Industries (SJI) click here.

You May Also Be Interested In

• Gilead Sciences (GILD) Misses Q1 EPS by 288c
• Arca Biopharma (ABIO) Reports Q1 Loss of $0.14
• Eldorado Gold (EGO) Tops Q1 EPS by 10c