BOSTON – Bay State utility company NSTAR (NYSE: NST) posted a second-quarter profit of $50.37 million, a 0.54-percent increase from the year-ago $50.10 million, on revenue that increased 2.56 percent year over year to $743.71 million.
Earnings per diluted common share amounted to 47 cents, NSTAR said. The amount – although a decline from the 55 cents per share of the first quarter, when winter weather boosted sales of electricity and natural gas (READ MORE) – was unchanged from the 2007 second quarter.
“We are on track for another positive year,” Chairman, President and CEO Thomas J. May said in a statement late yesterday. The company paid dividends of 35 cents per common share – unchanged from the preceding quarter – a 7.69-percent increase from the 32.5 cents per share NSTAR paid in the 2007 second quarter.
May noted that the Green Communities Act signed into law this month by Gov. Deval L. Patrick (READ MORE) “places significant importance on developing renewable energy resources and energy efficiency programs in Massachusetts.
“Our NSTAR Green program and our longstanding commitment to energy efficiency programs are consistent with the new legislation,” he added. “Our award-winning energy savings programs are integral parts of our efforts to lower energy costs for customers and reduce reliance on fossil fuels.”
Higher transmission and electric distribution revenue, lower interest costs and a 0.2-percent increase in electric sales compared with a year ago were mostly offset by lower sales of natural gas and increases in operations and maintenance costs, depreciation and property taxes, NSTAR said.
For the first six months of the year, NSTAR posted earnings of $109.60 million, an 11.93-percent increase from the year-ago $97.20 million, despite revenue that fell 4.11 percent to $1.64 billion. Earnings per diluted common share rose to $1.02 from the 2007 first half’s 91 cents.
Year-to-date sales of electricity rose 0.7 percent compared with a year ago, while natural gas sales fell 3.4 percent, NSTAR said.
Highlights of the second quarter included the U.S. Green Building Council’s awarding of gold-level Leadership in Energy and Environmental Design (LEED) certification to NSTAR’s refurbished offices in Westwood, Mass. (READ MORE), and the selection of a local wind-turbine developer as the winner of the Massachusetts Institute of Technology’s 2008 Clean Energy Entrepreneurship Prize (CEEP), a contest NSTAR co-sponsored with the U.S. Department of Energy (READ MORE).
More recently, the company pledged a $1 donation to the Mass. Department of Conservation & Recreation’s community forestry programs for every customer who switched to paper-free billing before the end of July. (READ MORE)
And, May said, “just last week, the Mass. Department of Public Utilities issued a rate decision that will begin the process of decoupling electric and natural gas rates from sales volume. Decoupling will allow utility companies to carry out the provisions of the new energy legislation, while at the same time allow utilities to collect an adequate level of revenues to maintain the quality and reliability of electric and gas service.
“The department ruled that existing rate plans can continue until the end of their term and utilities can recover lost base revenues and incentives from incremental energy-efficiency spending.”
NSTAR re-affirmed its 2008 forecast calling for full-year earnings of $2.16 to $2.26 per diluted common share.
NSTAR (NYSE: NST) is an investor-owned natural gas and electric utility serving 1.4 million customers in New Bedford, Dartmouth, Fairhaven and other portions of eastern and central Massachusetts. Additional information about the company – and its NSTAR Green wind-power option – is available at www.nstar.com.
