WGL Holdings Inc., parent company of gas utility Washington Gas Light, said Wednesday that it has postponed the release of its quarterly financial report because it discovered inaccuracies in prior financials regarding subsidiary Washington Gas Energy Services, Inc. (WGEServices), its energy marketing subsidiary. The company said earnings for the market unit may have been understated in certain prior periods.
The company had planned to release earnings today and hold a conference call on Thursday. But in the course of closing its books for the quarter and year ended Sept. 30, it found that net income of WGEServices may have been understated on a cumulative basis from the first quarter of fiscal year 2003 through the third quarter of fiscal year 2005. The company continues to review its computations and will release earnings when the necessary analysis is complete. Utility earnings have been unaffected by the analysis.
Based on the latest information, the effect of this earnings understatement will be recorded in this financial report for the company’s fourth quarter of fiscal year 2005. The amount to be recorded is not expected to be material to net income of the company for the year, WGL said. If the effect of the adjustments had been recorded in prior interim and annual periods, the effect on those interim and annual periods would not be material, it added.
WGL expects to file its annual report on Form 10-K no later than the Securities and Exchange Commission’s filing deadline. Headquartered in Washington, DC, Washington Gas serves one million customers in the surrounding region.
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