Northwest Natural Gas Q1 Profit Rises; Backs 2017 Profit View

(RTTNews) - Northwest Natural Gas Company, dba NW Natural (NWN), reported that its net income for the first-quarter of 2017 rose to $40.3 million or $1.40 per share from $36.6 million or $1.33 per share for the same period in 2016.

Results for the first quarter of 2016 included a non-cash disallowance related to the Company's environmental regulatory proceeding and the implementation of the environmental mechanism.

Excluding this charge on a non-GAAP basis, EPS for 2016 was $1.40 on net income of $38.6 million. Results for 2017 reflect higher utility segment earnings including additional margin from customer growth and the effects of colder weather, offset by lower gas storage segment earnings primarily from lower asset management revenues. Operating revenues grew to $297.32 million from $255.53 million last year.

Analysts polled by Thomson Reuters expected the company to report earnings of $1.40 per share and revenues of $272.15 million. Analysts' estimates typically exclude special items.

The Company reaffirmed 2017 earnings guidance today in the range of $2.05 to $2.25 per share. Analysts expect annual earnings of $2.16 per share. The guidance assumes customer growth from our utility segment, average weather conditions, slow recovery of the gas storage market, and no significant changes in prevailing regulatory policies, mechanisms, or outcomes, or significant laws or regulations.

The board of directors of NW Natural declared a quarterly dividend of 47 cents per share on the Company's common stock. The dividends will be paid on May 15, 2017 to shareholders of record on April 28, 2017. The Company's indicated annual dividend rate is $1.88 per share.