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Superior Plus Reports Higher Gross Profit from Retail Supply Business

August  10, 2011
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Superior Plus' fixed-price energy services business generated gross profits of $9.0 million for the second quarter of 2011, compared to $6.8 million in the prior year quarter (all figures Canadian).

Higher natural gas gross profits came from the contribution of increased transportation revenues and favorable natural gas market pricing. Superior Plus noted that these factors offset declines in the residential supply business as government regulation in Ontario and British Columbia have led these markets to "die a slow death."

Specifically, natural gas gross profit was $7.5 million, up from $5.9 million a year ago. Natural gas gross profit per unit was $1.364 per gigajoule (GJ), up from 86.6 cents per GJ a year ago.

The increase in natural gas gross margin was due to increased residential renewal margins, higher transportation revenue, lower transportation costs and lower charges associated with load balancing. Sales volumes of natural gas were 5.5 million GJ, down from 6.8 million GJ a year ago, due to lower than expected commercial customer aggregation and the continued decline in residential volumes as a result of focusing marketing efforts towards the commercial segment.

Electric gross profit was $1.5 million for the quarter, up from $900,000 a year ago. The increase resulted from the aggregation of additional commercial customers in the Ontario market and higher sales volumes.

Superior Plus said that the fixed-price energy services segment continues to grow in the newly entered Pennsylvania electricity market after successfully launching a residential electricity offering that is being sold to customers of Superior Plus' heating oil and propane business.

Electric gross profit per unit was $10.3/MWh, down from $12.3/MWh a year ago. Volumes were 146.1 GWh, up from 73.4 GWh a year ago.

 

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