New Jersey Resources, a Fortune 100 company that provides reliable and safe natural gas and renewable energy services, recently announced its net financial earnings for the first quarter of fiscal year 2012, which revealed an improvement.
With earnings staying strong for New Jersey Natural Gas, the company's regulated utility subsidiary, net income increased by 6.6 percent during the first quarter of fiscal 2012 to roughly $26 million, compared with $24.4 million the same time last year. The primary contributors to the increase include an employee incentive program in addition to steady customer growth and accelerated infrastructure investments.
"We are off to a strong start in fiscal 2012," said Laurence Downes, chairman and CEO of NJR. "Our renewable energy strategy is taking hold and the results can be seen in strong earnings at NJR Clean Energy Ventures. Increased gross margin at our regulated business, New Jersey Natural Gas, also contributed to this quarter's performance. We remain committed to delivering consistent returns to our shareowners. On behalf of our board of directors, I would like to thank all our employees for their passion and commitment, which have always been a key driver of our performance."
During the first three months of fiscal 2012, New Jersey Natural Gas's gross margin sharing incentive programs, which include capacity release, off-system sales, financial risk management programs and storage optimization, created utility gross margin of $2.8 million, compared to the $2.7 million generated the same time last year.
"With heating oil prices in the Northeast that are more than double the projected cost of natural gas on a relative basis, the conversion market at New Jersey Natural Gas is poised for continued growth," Downes added. "In the first quarter of fiscal 2012, oil heat customers accounted for 64 percent of conversions. Additionally, electric prices in New Jersey remain among the highest in the country."
Meanwhile, the board of directors of Sandvik AB recently proposed a long-term incentive program. The new plan is expected to include the roughly 350 senior executives and key individuals within the group, on the same terms and conditions included in the long-term incentive program offered last year.
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