Investing.com -- WGL Holdings Inc (N:WGL), the parent company of Washington Gas Light Company and other energy-related subsidiaries reported a 6% increase in net profits for the first quarter of fiscal year 2016, the public utility said on Friday.
WGL Holdings, which serves customers in the District of Columbia, Maryland and Virginia, posted GAAP earnings of $68.2 million or 1.36 per share for its first quarter, which ended in late-December. By comparison, the utility reported profits of $63.9 million or 1.28 per share over the same period a year earlier. Analysts expected per share earnings of 1.25 for the quarter.
Washington Gas Light, its natural gas subsidiary, delivers its product to more than 1 million customers in the region on an annual basis. The company managed to topped analysts' forecasts despite warmer than expected temperatures in December, which restrained customer demand for natural gas.
"Our first quarter results have exceeded our expectations in spite of unseasonably warm weather in the quarter. Our portfolio of energy solutions is showing balanced results. Our utility had a solid quarter, and I am particularly pleased with the growth in adjusted EBIT in our non-utility businesses compared to the first quarter of the prior year," said Terry D. McCallister, WGL Holdings Chairman and Chief Executive Officer. "Our midstream energy services and commercial energy systems segments both saw strong earnings growth in the period, and our retail energy-marketing business continued to post robust results as well."
WGL Holdings' Board of Directors also authorized a 5% dividend increase of 0.10 to an annualized level of 1.95. It marked the 40th consecutive year the utility increased its annual dividend and the 165th year it paid out a dividend.
"This increase is consistent with our previously announced goal of maintaining a 5% dividend growth rate, and reflects our continued confidence in our ability to achieve our strategic goals and deliver strong earnings and dividend growth rates to our shareholders," McCallister added.
Following the positive report, McCallister said the company is increasing its 2016 guidance to the high end of its full-year range between $3.00 to$3.20 per share.
Shares in WGL Holdings inched up 0.11 or 0.17% to 65.83 in after-hours trading.