Saint John Energy workers can be seen at work in this file photo. (Staff photo)
Saint John Energy reported better-than-expected financial results in 2020 despite the pandemic.
Unaudited financial statements presented during last week’s annual general meeting show the utility ended the year with a net income of $74,000.
The figure is about midway between the utility’s original pre-COVID budget and its revised “COVID budget.”
At the start of 2020, Saint John Energy had been projecting a net income of $779,000 in budget.
But the pandemic forced them to review the budget based on the potential for lower energy sales and a reduced capacity of customers’ ability to pay their bills.
Based on those early assumptions, the utility developed a COVID budget which forced a potential for a loss of $953,000.
“Throughout the year, we took a disciplined approach to working within our new COVID budget. I’m very pleased to report that not only did we succeed but we beat it, and significantly,” the utility said in an email.
“This allowed us to end the year in a position of financial strength, moving forward on a sustainable path and a continued trajectory of growth.”
Gross margins for electrical operations were down by $833,000 over 2019, mainly due to reduced sales volumes attributed to the pandemic.
Operating expenses increased by $2.6 million year-over-year, due in part to additional investment to support the utility’s growth plan; higher salary, wages, and benefits costs; and more staffing to support efforts to inspect its oldest water heater rental units.
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