PORTLAND, Maine — The parent companies of Emera Maine and Bangor Gas on Monday reported a drop in earnings for the first three months of 2016, which they attributed in part to mild winter weather.
Bangor Gas parent Gas Natural Inc. reported net income was down to about $2.7 million, from $4.9 million last year, results it said were “significantly impacted by record-setting warm weather in most of its markets.”
“Normally, our geographic diversity is a strength, but unfortunately all regions were affected when compared with the prior year,” Greg Osborne, Gas Natural’s chief executive officer, said in an earnings statement Monday.
The earnings disparity was also affected by the unusual cold snaps of the first three months of 2015, which was colder than normal. This past winter swung far the other way, warmer both than last year and warmer than normal years.
In addition to Bangor Gas, the company has subsidiaries in Ohio, Montana and North Carolina.
In Maine, Gas Natural was also hit with the closure of Lincoln and Old Town mills late last year, which it said was reflected in this year’s results, but it still sees potential for growth in the state.
“We believe Maine remains an excellent market for growth even as it deals with economic challenges and we face tougher competition with lower oil prices,” Osborne said.
Emera’s Maine operations had income drop about 20 percent, also citing warmer weather and a decrease in industrial demand. The company also said the timing of capital expenses affected its earnings compared with the first quarter of 2015.
The company is trying to make a case to state regulators for other upgrades in its service area, outlining a five-year plan for about $175 million in transmission network upgrades. Regulators are reviewing that request and last month opened an audit into the company’s management and maintenance practices.
Emera subsidiary Emera Energy also faced a challenge from warmer weather and lower oil prices. It owns generation plants throughout New England, including in Rumford.
That subsidiary reported that lower margins in the first three months of the year dropped net income by about 37 percent, not including the additional impact a weak Canadian dollar has on the projected value of its future contracts, or the mark-to-market value of those deals.