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New Jersey Resources Corp (NYSE:NJR) Improved Its Operating Efficiency

Boston, MA 05/19/2014 (wallstreetpr) – New Jersey Resources Corp (NYSE:NJR) reported strong results in its second quarter (2Q2014) ended March 31, 2014 and increased the financial guidance for FY2014.

During 2Q2014, net financial earnings (NFE) improved significantly to $151.9 million or $3.61 per share versus $68.7 million or $1.64 per share in 2Q2013, due to strong results across its businesses, including wholesale, utility and power.

NJR’s strong result was primarily due to growing demand for natural gas and associated services as a result of prolonged cold weather.

Segment’s margin

Utility services:

The NFE for New Jersey Resources Corp (NYSE:NJR)’s utility business were $47 million (2Q2013: $45.9 million) due to higher utility gross margin resulted from additions of more customers, the SAVEGREEN Project, and incentive programs.

Wholesale business (NJR Energy Services-NJRES):

During 2Q2014, NJRES’s NFE increased significantly to $91.4 million (2Q2013: $16.4 million) due to increased demand for natural gas in the Midwest regions of the U.S., usually happened due to extreme cold weather. The segment expects to contribute 35-40% to NFE in FY2014.

Power business (NJR Clean Energy Ventures- NJRCEV):

NJRCEV’s NFE during 2Q2014 was $12.8 million (2Q2013: $5.2 million) due to increased revenues and forecasted tax benefits from the ongoing three grid-connected solar projects, which represents total investments of ~$68 million. The tax credit from the investment may affect the segment’s performance in the near term; however, the Company expects that the segment’s contribution to NFE will be around 5-15% in FY2014 and 10-20% in FY2015.

2014 guidance

In FY2014, New Jersey Resources Corp (NYSE:NJR) expects growth in its regulated businesses as a result of infrastructure investment, energy efficient programs like the SAVEGREEN Project and favorable natural gas pricing that. Accordingly, the Company increased its guidance for NFE per share to 5-9% and expects that the regulated businesses will contribute 65-80% of long-term NFE.

In addition, the Company expects higher growth in dividend; therefore, it raised its guidance from 5% to 6-8% in FY2014.


New Jersey Resources Corp (NYSE:NJR) continues to invest to improve its infrastructure and strengthen its delivery system that will provide future growth. The growing earnings across the business segments will further improve its financial position and reduces the needs for external funding.

Published by Benjamin Roussey

Benjamin Roussey is from Sacramento, California. He has two master’s degrees and served four years in the U.S. Navy. His bachelor’s degree is from CSUS (1999) where he was on a baseball pitching scholarship. His second master’s degree is an MBA in Global Management from the University of Phoenix (2006). He has worked for small businesses, public agencies, and large corporations. He has lived in Korea and Saudi Arabia where he was an ESL instructor. Benjamin spends his time in between Northern California and Cabo San Lucas, Mexico, committing himself to his craft of freelance and website writing.

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