SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15 (d) of the
Securities Exchange Act of 1934
Date of Report: November 22, 1995
Providence Energy Corporation
(Exact name of registrant as specified in its charter)
Rhode Island 0-9380 05-0389170
(State of incorporation (Commission (IRS Employer
or organization) File Number) Identification No.)
100 Weybosset Street, Providence, Rhode Island 02903
(Address of principal executive offices) (Zip Code)
Registrant's telephone number: (401) 272-5040
N/A
(Former name or former address, if changed since last report)
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Item 5. Other events.
Attached to this report as Exhibit A is a copy of a release
issued November 21, 1995 by the Registrant with respect to the
matters referred to therein.
Item 7. Financial Statements, Pro Forma Financial Information
and Exhibits.
Exhibit A - release.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.
PROVIDENCE ENERGY CORPORATION
By /S/ Gary S. Gillheeney
Vice President, Financial and
Information Services, Treasurer,
and Assistant Secretary
Date: November 22, 1995
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CONTACTS:
Linda S. Lennox Harry J. Bishop
Director of Investor RelationsDirector of Finance and
Revenue Requirements
(401) 272-5040, Ext. 2469 (401) 272-5040, Ext. 2254
(401) 885-2203 (Home)
FOR IMMEDIATE RELEASE
PROVIDENCE ENERGY ANNOUNCES FISCAL YEAR 1995 EARNINGS
PROVIDENCE, RI, November 21, 1995: Providence Energy Corporation
(AMEX-PVY) today reported earnings for the year ended September 30, 1995 of
$1.09 per share of common stock, down 25 percent from fiscal year 1994. Net
income was $6.1 million, compared to $8.1 million last year.
The reason for the decline in earnings was extremely warm temperatures
during the fiscal year, partially offset by reduced operation and maintenance
expenses. In fact, 1995 was the second warmest heating season in 42 years,
with temperatures averaging over 10 percent warmer than normal. The loss of
heating load reduced 1995 earnings by about 45 cents per share, while the
previous year's colder than normal temperatures increased earnings by
approximately 13 cents per share.
Vice President of Finance, Gary S. Gillheeney stated, "Through
aggressive cost controls and a recent reorganization, the Company was able to
reduce operating expenses by over $3 million from the previous year."
As previously announced, Providence Gas Company, Providence Energy's
largest subsidiary, received approval from the Rhode Island Public Utilities
Commission on November 17, 1995, for a rate increase of $3.9 million. The new
rates will take effect December 17, 1995. The order allowed the Company a
10.9 percent return on equity. As part of the decision, the Company will not
recover previously deferred reorganization and other costs totaling
approximately $1.7 million, net of tax. The impact of these one-time charges
will be recorded in the first quarter of fiscal year 1996 and are likely to be
offset by a one-time adjustment in the Company's method of accruing property
tax expense, resulting in no expected material net impact on 1996 earnings.
Providence Energy is the holding company and parent of Providence Gas
Company, Rhode Island's largest natural gas distribution company, and North
Attleboro Gas Company in nearby Massachusetts. Combined, the two utilities
provide natural gas service to over 163,000 homes and businesses in
Providence, Newport and 27 other cities and towns in Rhode Island and nearby
Massachusetts.
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PROVIDENCE ENERGY CORPORATION AND SUBSIDIARIES
SUMMARIZED CONSOLIDATED FINANCIAL INFORMATION
FOR THE PERIODS ENDED SEPTEMBER 30
THREE MONTHS
-----------------------
1995 1994
-----------------------
(thousands, except per share amounts)
Operating revenues$ 30,371 $ 33,731
Cost of gas sold 16,729 19,220
--------- --------
Operating margin 13,642 14,511
Operating expenses 14,053 13,375
--------- --------
Operating income (loss) (411) 1,136
Nonutility income (loss),
net 220 (336)
--------- --------
Income (loss) before
interest expense (191) 800
Interest expense 1,819 1,578
--------- --------
Income (loss) after
interest expense (2,010) (778)
Preferred dividends of
subsidiary (174) (174)
--------- --------
Net income (loss) $ (2,184)$ (952)
========= ========
Net income (loss)
per common share $ (.39) $ (.17)
========= ========
Dividends paid per
common share $ .27 $ .27
========= ========
Weighted average common
shares outstanding 5,657.1 5,570.0
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PROVIDENCE ENERGY CORPORATION AND SUBSIDIARIES
SUMMARIZED CONSOLIDATED FINANCIAL INFORMATION
FOR THE PERIODS ENDED SEPTEMBER 30
TWELVE MONTHS
---------------------
1995 1994
---------------------
(thousands, except per share amounts)
Operating revenues $183,992 $222,778
Cost of gas sold 100,944 135,104
-------- --------
Operating margin 83,048 87,674
Operating expenses 69,711 72,838
-------- --------
Operating income (loss) 13,337 14,836
Nonutility income (loss),
net 865 196
-------- --------
Income (loss) before
interest expense 14,202 15,032
Interest expense 7,379 6,247
-------- --------
Income (loss) after
interest expense 6,823 8,785
Preferred dividends of
subsidiary (696) (696)
-------- --------
Net income (loss) $ 6,127 $ 8,089
======== ========
Net income (loss)
per common share $ 1.09$ 1.46
======== ========
Dividends paid per
common share $ 1.08 $ 1.06
======== ========
Weighted average common
shares outstanding 5,624.2 5,534.1
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