Boston, MA 09/08/2014 (wallstreetpr) – Energy services company, Piedmont Natural Gas Company, Inc. (NYSE:PNY) has spent 10% less for the cost of gas during the third quarter compared to the last year and generated 1% uptick in its top line. As a result, it could gain 4.33 percentage points in gross margin. However, it failed to offset the weaknesses recorded in other divisions thus allowing a wider net loss for the third quarter.
Gross Margin
The Piedmont Natural Gas Company, Inc. (NYSE:PNY) has spent $59.34 million for the third quarter towards cost of gas, 10% lower than $65.94 million resulting in 8% growth in gross profit to $104.87 million from $97 million in the year-ago quarter, a statement issued by the company indicated. In terms of percentage, its gross margin was 63.86% compared 59.43% in the year earlier quarter.
Piedmont Energy attributed the increased margin to customer growth, higher transportation services in the power generation sector, and regulatory rate adjustments. Its Operations and maintenance costs grew 9% to $68.61 million from $62.95 million. The company blamed higher payroll due to additional employees and incentive accruals, approved amortization of regulatory assets, contract labor, and increased bad debts amidst higher customer consumption this past winter season for the higher maintenance costs.
Net Loss
The Piedmont Natural Gas Company, Inc. (NYSE:PNY) suffered a net loss of $7.34 million or a loss of nine cents a share, wider than the net loss of $2.29 million or a loss of three cents a share in the previous year quarter. Its operating revenues rose 1% to $164.19 million from $162.94 million in the year-ago quarter.
Apart from higher operations and maintenance costs, Piedmont Energy have spent $13.12 million towards utility interest charges, which was 130% more than a year earlier quarter’s $5.7 million. Its general taxes and depreciation have also increased 13% and 5% respectively over the last year quarter period.
Dividend And Guidance
For the fiscal year 2014, the Piedmont Natural Gas Company, Inc. (NYSE:PNY) has reiterated its earnings outlook of $1.80 – $1.90 a share with the company projecting emphasis at the higher end of the range.
Piedmont Energy said that its board has also declared a quarterly dividend of 32 cents a share payable to shareholders of record on September 24.
