Cove Point LNG terminal to reopenColumbia LNG Corp. said...

EARNINGS

November 13, 1992|By Kim Clark | Kim Clark,Staff Writer

Cove Point LNG terminal to reopen

Columbia LNG Corp. said yesterday that it would reopen its liquefied natural gas terminal on the Chesapeake Bay.

Company officials said they couldn't say how many jobs would be created when the long-closed, 1,000-acre terminal near Cove Point is restarted in 1994.

The $377 million terminal, which opened in 1978 and closed when gasprices fell in 1980, is being maintained by a 16-member maintenance crew, said H. William Chaddock, a spokesman for the terminal and for Wilmington, Del.-based Columbia Gas System Inc.

The holding company, which has operated under bankruptcy court protection since July 31, 1991, has a 90 percent stake in the terminal.

Mr. Chaddock said the company plans to use about half of the terminal, which will unload, store and regasify containers of liquefied naturalgas as a supplier for periods of peak demand and prices, such as cold winter days.

The company will try to find gas delivery companies, such as Baltimore Gas and Electric Co. and Washington Gas Light Co., )) that are willing, essentially, to rent the other half, Mr. Chaddock said.

Reopening the terminal will cost at least $40 million and requires Federal Energy Regulatory Commission approval, the company said.

In other news, the parent company, reported that it received another extension of its Chapter 11 bankruptcy reorganization deadline and now has until March 25 to develop a plan to emerge from the bankruptcy court's protection.

In addition, the parent company reported losing $78.1 million in its third fiscal quarter, which ended Sept. 30, an improvement from the $122.1 million loss in last year's third quarter.

Excluding special charges for environmental costs, the write-down for Cove Point and bankruptcy costs, the company lost $7.5 million on operations in the three-month summer period. During the same period last year, the operating loss was $16.7 million.

Three months ended 9/30

..............Revenue.. .......... Net.................. Share

92.......... 432,200,000........ (78,100,000)....... (1.54)

91.......... 378,100,000........ (122,100,000)...... (2.41)

% change........... +14.3................... --............ --

Nine months ended 9/30

..................Revenue........... Net................. Share

92..............1,986,500,000..... (36,600,000)...... (0.72)

91............. 1,786,500,000..... (775,900,000).... (15.35)

% change................ +11.2............... --............ --

Chesapeake Biological Laboratories Inc.

This Baltimore-based company reported earnings yesterday of $27,000 for the second quarter ended Sept. 30, a significant improvement from a loss of $82,000 in the same period the year before. Revenues for the quarter increased by 96 percent for the three-month period and 98 percent for the six-month period.

Chesapeake Biological manufacturers specialty products for biotechnology companies. The company attributed the increase in revenues to a gain in contract manufacturing.

Three months ended 9/30

.....................Revenue............. Net................. Share

92................. 754,000............ 27,000.............. 0.01

91................. 385,000........... (82,000)........... (0.03)

% change....... ...... +95.8................. NA................. NA

Six months ended 9/30

....................Revenue............... Net............... Share

92................ 1,821,000........... 249,000. .......... 0.07

91................ 920,000............. (72,000).........(.0.02)

% change............. +97.9................... NA............... NA

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