DOVER, Del., July 7, 2003 -- Chesapeake Utilities Corp. announced the sale of the assets and operations of two of its seven water services businesses.
These actions mark the company's first steps in the implementation of the company's plan to reassess its water services activities and take actions to improve returns from this business segment.
The sales of these operations are not expected to have a material impact on the company's results. Going forward, the sales are expected to reduce losses from this segment. Management continues to look at options for the remaining water services businesses, and is committed to improving the return from these operations.
On June 3, 2003, the company sold the assets of Absolute Water Care, Inc. based in Venice, Florida. This was followed by the sale of the assets of Sharp Water of Minnesota, Inc. on June 30, 2003. These sales are consistent with the company's strategy of improving corporate returns.
"Results from our water services business have been disappointing, and the actions announced today reflect our commitment to implement our strategy to improve the operational and financial performance of this business during 2003," stated John Schimkaitis, President and Chief Executive Officer of Chesapeake Utilities. "We continue to believe that strong performance and growth in our core energy operations and success in addressing the challenges in our water services business provide additional opportunities for improving returns going forward."
Matters discussed in this release may include forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those in the forward-looking statements. For example, the success of the company's water business strategy is subject to competitive and economic pressures. Please refer to the Cautionary Statement in the company's report on Form 10-K for the year ended December 31, 2002 for further information on the risks and uncertainties related to the company's forward-looking statements.
Chesapeake's strategy is to grow earnings from its utility foundation by investing in related businesses and services that provide opportunities for higher, unregulated returns. This growth strategy includes acquisitions and investments in unregulated businesses as well as the continued investment and expansion of the company's utility operations that provide a stable base of earnings. Chesapeake continuously re-evaluates its investments to ensure that they are consistent with its strategy and the goal of enhancing shareholder value.
Chesapeake Utilities Corporation is a diversified utility company engaged in natural gas distribution and transmission, propane gas distribution and wholesale marketing, advanced information services and water services. Information about Chesapeake's businesses is available on the World Wide Web at www.chpk.com.
