1 / 14

Annual Report

Annual Report. Keyspan Energy Michael Titone ACG2021. Executive Summary. Keyspan energy transmits and distributes electricity and natural gas to 4 million customers from Massachusetts, New Hampshire, New York, and Rhode Island.

zared
Download Presentation

Annual Report

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Annual Report Keyspan Energy Michael Titone ACG2021

  2. Executive Summary • Keyspan energy transmits and distributes electricity and natural gas to 4 million customers from Massachusetts, New Hampshire, New York, and Rhode Island. • Keyspan is a member of the S&P 500 and is traded on the NYSE under KSE • This company is the largest distributor of natural gas in the Northeast and the 5th largest gas distributor in the United States. Keyspan is also the biggest electric generator in the state of New York. • In the past year Keyspan has diversified it’s largest none core assets ( The Houston Exploration Company and Keyspan Energy Canada. This generated I Billion in cash proceeds which has paid of debt and allowed the company to purchase additional core assets.

  3. Executive Summary Cont. • This allowed for Keyspan to raise dividends for the 1st time since 1998 to 1.82 per share. • This helped contribute to the companies “A” credit rating on the S&P and over the past five years Keyspan provided a total return to shareholders of 118 percent. From 2003 to 2004 Keyspan earnings per share increased more the 25 cents. • Keyspan also has interests in Iroquois gas pipeline of 20%, ownership of (LNG) storage facility as well as 50% interest in Islander East and 21% of interest in Millennium pipeline projects. • I feel Keyspan is a growing company that is going to continue expanding throughout the northeast. Along with the companies transportation, production, distribution, and storage strategic as well a the prominent investments in natural gas exploration and pipeline development Keyspan will continue to succeed in increasing dividends for it’s stockholders.

  4. Introduction • Chief Executive Officer- Robert B. Catell • Keyspan's general office is at One Metro Tech Center, Brooklyn, New York, 11201 • Keyspans last fiscal year was 2004 and the company is mainly involved with gas distribution and electricity for the Northeast. Specifically New York state and New York city with it’s 5 boroughs.

  5. Audit Report • Keyspan is audited by Independent Auditors. • The Independent Registered Public Accountants of Deloitte & Touche LLP of 2 World Financial Center, New York, New York, 10281 (212-436-2000) • With the companys recent divesting of some it’s largest none core assets Keyspan is proving to be a good company to invest in.

  6. Stock Market Information • As of March 3rd, 2006 4:03 p.m. ET Keyspan last traded at $40.80.\ • In the past 12 months Keyspan has a had a steady none flux in stock prices through Aug. 05 – Oct. 05,( only changed 4 points) and from the beginning of Oct. 05 to the beginning of Feb. 06 the stock fell as much as 9 points. However, from Mid Feb. 06 to present day the stock has jumped to a near high of $41. • Dividend per share- $3.80 • I fell Keyspan is a company worth buying and holding onto since it has personally bought out Brooklyn Union Gas Company which has been under my parents stock portfolio for the past 15 yrs.

  7. Industry Situation and Company Plans • As stated by Keypan’s chief executive officer 2004 was a successful year. Overall, it was a year typified by accomplishments, advancement, and positioning for the future. The focus for 2005 is to improve financial performance, gas and electrical services, none-core asset sales, earnings, shareholder return and increase dividends. For instance in 2004 shareholder return increased 12 percent (4.5 percent in dividend yield and 7 percent in stock price appreciation) along with the companies dividend increase to 1.82 per share Keyspan is looking to be a strong prominent company. • http://investor.keyspanenergy.com • http://ccbn.mobular.net/ccbn/7/912/969/

  8. Income Statement • Single Step- 2004 l 2003 • 4,407292 4,101,272 • 579,563 574,254 • 2,664,662 2,444,485 • 1,089,773 1,067,200 • 463,665 net income 386,730 net income • in thousands This shows growth in net income of almost 100,000 in one year.

  9. Balance Sheet • Asset= Liabilities + Stockholders’ Equity • 13,364,130 = 5,030,991 + 8,333,139 (2004) • 14,640,182 = 5,275,010 + 9,365,172 (2003) • There is not much change in assets from 2003 to 2004 although assets were higher in 2003.

  10. Statement of Cash Flows • In 2004 a decrease of 473.3 million or 39% compared to 2003. This is due to federal tax refunds in 2003. For 2004 Net Income was 463,665 and for 2003 it was 386,730 in thousands of dollars. • Keyspan in growing primarily through buying out smaller companies (ie. My Brooklyn Union Gas Company) to dominate the gas distribution in the northeast even more and by purchasing additional core assets.

  11. Financial Analysis and Liquidity Ratios • 20042003 • Working capital- 796,306 535,045 • Current ration- 1.35 1.29 • Receivable turnover- 8.43 times 7.18 times • Average Sales Uncoll.- 7 6 • Inventory Turnover-16.9 times 17.2 times

  12. Financial Analysis Profitability Ratios • 20042003 • Profit Margin- 7% 6% • Asset Turnover- 49.7% 44.6% • Return on Assets- 3.46% 2.64% • Return on Equity- 22% 18.9%

  13. Financial Analysis Solvency Ratio • 20042003 • Debt to equity- 53% 58%

  14. Financial Analysis Market Strength Ratios • 20042003 • Earnings per share- 2.89 2.44 • Dividend yield- 4.7% 4.6%

More Related