Piedmont Natural Gas has announced results for the fiscal year ended October 31, 2009. For the fiscal year, the Company reported record net income and earnings per share of $122.8 million and $1.67 per diluted share, respectively. These results compare with net income of $110 million, or $1.49 per diluted share, for the 2008 fiscal year.
Chairman, President and CEO Thomas E. Skains commented:
"During a year of ongoing economic challenge, we were again successful in providing our shareholders with solid financial performance, dividend growth, and record earnings per share. Over the past year we continued our efforts to grow our customer base, improve our business processes and operational efficiency, and expand our customer services - all of which made positive contributions to our success in 2009."
Gross customer additions for the year were 12,600, a growth rate of 1.3%. The decline in gross customer additions from 20,500 in 2008 reflects the slowdown in the new construction market as a result of the economic recession.
System throughput for fiscal year 2009 totaled 217 million dekatherms, compared with 210 million dekatherms for the previous year. The increase was primarily due to weather in 2009 that was 3% colder than normal and 7% colder than 2008 and an increase in deliveries to power generation customers.
For the year, margin increased by $8.6 million compared to the prior year. The increase in margin is due to the Company's 2008 general rate case in North Carolina and continued customer growth in the Company's three-state service area. Operations and maintenance expenses for the year decreased $2.7 million from the previous fiscal year primarily due to lower pension and medical expenses and contract labor expense.
Included in Other Income are results from the Company's interest in SouthStar Energy Services, which contributed $24.6 million pre-tax income in fiscal 2009 compared with $18.3 million pre-tax income for the prior year. SouthStar's increased earnings were primarily due to higher contributions from the management of storage and transportation assets, margin impacts from lower of cost or market inventory adjustments, and increased average customer usage due to colder weather.
Mr. Skains concluded his remarks about the Company's 2009 fiscal year by commenting, "Our record results in 2009 demonstrate the value our customers continue to place on natural gas as a clean, efficient and reliable energy source. Our success was driven by the commitment of our employees to quality customer service and safe and reliable operations. We have once again ended the year in a strong financial position, a source of strength as we pursue the opportunities for growth in the years ahead."
FISCAL 2010 EARNINGS GUIDANCE REAFFIRMED
Piedmont Natural Gas reaffirms its fiscal year 2010 earnings guidance of $1.90 to $2.00 per diluted share. Fiscal year 2010 guidance includes an expected $0.42 gain in the first quarter of 2010 related to Piedmont's sale of one-half of its ownership interest in SouthStar Energy Services to AGL Resources.
DIVIDEND
At its regular quarterly meeting of the Company's Board of Directors on December 17, 2009, Piedmont Natural Gas announced the declaration of a quarterly dividend on Common Stock of $0.27 cents per share, payable January 15, 2010, to holders of record at the close of business on December 28, 2009.
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