After paying the costs for acquiring three natural gas companies, UIL Holdings – the parent company of Connecticut utility United Illuminating – saw a 27 percent drop in its second quarter net income compared to last year.
The company’s net income before those acquisition related costs was $15.1 million, up 6 percent from the second quarter of 2009; but those $4.3 million in costs drove UIL Holdings quarterly results down.
The earnings per share for the 2010 second quarter were 34 cents per share, down from 51 cents in the second quarter 2009.
The acquisition costs came in May when UIL Holdings announced a deal to purchase The South Connecticut Gas Company, The Connecticut Natural Gas Corporation and The Berkshire Gas Company. That deal is expected to close in 2011.
Also in the second quarter, UIL invested in Connecticut Light & Power’s New England East West Solution transmission project, which will result in UIL owning 8.4 percent of the project’s transmission lines. The GenConn Energy Devon facility – a 50/50 venture between NRG Energy, Inc. and United Illuminating – started operations in the second quarter.
For the first six months of 2010, UIL’s total net income is $26.2 million, up 2 percent from the first six months of 2009, even after the acquisition costs.
