BGE profits rise 19.4% for the second quarter

July 16, 1994|By Ross Hetrick | Ross Hetrick,Sun Staff Writer

With the mercury shooting up last month, profits for the Baltimore Gas and Electric Co. soared by 19.4 percent during the second quarter, to $66.7 million.

But while the second-quarter results were sizzling, it will be the third quarter -- when the company normally earns half of its profits -- that will be the true test for BGE.

"Don't get overly excited," said Ronald F. Tanner, a utility analyst for Legg Mason Inc., a Baltimore-based brokerage firm.

"[The results] were surprisingly good, but not that good when you consider how hot it is."

BGE's stock rose 37.5 cents yesterday, to close at $22.25 a share.

The company also declared a quarterly dividend of 38 cents per share yesterday, the same as last quarter, payable Oct. 3 to shareholders of record Sept. 12.

Like many utilities, BGE makes most of its money during the peak air conditioning months of July, August and September. During the last two years, BGE earned 52 percent of its profits during those months.

BGE got a jump on things in June, when sales of electricity hit 2.5 million megawatt hours -- a record for June.

That compares with the summer record of 2.9 million megawatt hours, set last July, and the all-time record of 3 million megawatt hours, set during this year's frigid January.

The combination of the cold winter weather and the hot June weather helped to push BGE's six-month earnings up by 22.3 percent, to $148.9 million.

Baltimore Gas ...... Ticker ... Yesterday's

and Electric Co. ... Symbol ... Cls. .. Chg.

..... ...... ... .... BGE ..... 22 1/4 + 3/8

Period ended

June 30 ........ 2nd qtr. ...... Year ago ... Chg.

Revenue ........ $630,351 ...... $564,721 ... +11.6%

Net Income ...... $66,708 ....... $55,876 ... +19.4%

Primary EPS ....... $0.39 ......... $0.31 ... +25.8%

......... ....... 6 mos. ....... Year ago ... Chg.

Revenue ...... $1,378,626 .... $1,248,546 ... +10.4%

Net Income ..... $148,853 ...... $121,672 ... +22.3%

Primary EPS ....... $0.88 ......... $0.70 ... +25.7%

Figures in thousands (except per share data.)

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