WGL Holdings, Inc.: SWOT Analysis & Company Profile by BusinessReview

VIEWS: 27 PAGES: 22

Business Review’s WGL Holdings, Inc. contains a company overview, key facts, locations and subsidiaries, news and events as well as a SWOT analysis of the company.

More Info
									WGL Holdings, Inc.

_________________________________________________________________________________




WGL Holdings, Inc.: SWOT Analysis &
Company Profile


Reference code: BRGE063CP10-Q4

Published: Jan 2011




Business Review
John Carpenter House
7 Carmelite Street
London EC4Y 0BS
United Kingdom
Tel: +44 (0) 20 7936 6400
Fax: +44 (0) 20 7336 6813



___________________________________________________________________________________________

WGL Holdings, Inc. - SWOT Profile                                                   Page 1
WGL Holdings, Inc.

__________________________________________________________________________________________


WGL Holdings, Inc. - Company Overview

WGL Holdings, Inc. (WGL) is a public utility holding company engaged in selling and delivering natural gas and providing
a range of energy-related products and services to customers. The company principally serves its customers in the
District of Columbia, and the surrounding metropolitan areas in Maryland and Virginia. WGL operates through its
subsidiaries that include Washington Gas Resources Corporation (Washington Gas Resources), Washington Gas Light
Company, Hampshire Gas Company (Hampshire) and Crab Run Gas Company (Crab Run). It operates through three
operating segments, namely, Regulated Utility, Retail Energy-Marketing, and Design-Build Energy Systems. The
company caters its services to residential, commercial and industrial customers. WGL is headquartered in Washington
D.C, the US.


Financial Performance

The company reported revenues of US$2,708.88 million during the fiscal year ended September 2010 (fiscal 2010). Its
revenues grew at a compound annual growth rate (CAGR) of 1.52%, during the period, 2008-2010, with an annual growth
of 0.07% over the fiscal year 2009. During the fiscal year 2010, its operating margin was 8.27% as against an operating
margin of 8.93% during the fiscal year 2009. Moreover, during the fiscal year 2010, the company’s net profit margin was
4.12% as against a net profit margin of 4.5% during the fiscal year 2009.




WGL Holdings, Inc. - Key Facts

WGL Holdings, Inc., Key Facts

                                  101 Constitution Avenue., N.W.,
                                  Washington, WashingtonD.C.        Ticker Symbol, Stock       WGL (New York Stock
Corporate Address:                                                                             Exchange)
                                                                    Exchange
                                  (DC), 20080, United States


Telephone                         + 1 703 7502000                   No. of Employees           1,399



Fax                               N/A                               Financial Year End         September



URL                               www.wglholdings.com               Revenue (in USD Million)   2,708.88



Industry                          Energy and Utilities



Locations                         United States

Source: Annual Report, Company Website, Primary and Secondary Research




___________________________________________________________________________________________

WGL Holdings, Inc. - SWOT Profile                                                                                    Page 2
WGL Holdings, Inc.

__________________________________________________________________________________________


WGL Holdings, Inc. - Business Description

WGL Holdings, Inc. (WGL) through its subsidiaries sells and delivers natural gas and electricity. The company also
provides a variety of energy-related products and services to customers mainly in the District of Columbia, and the
surrounding metropolitan areas in Maryland and Virginia. As of October 2010, it had 1,399 employees.

WGL is a holding company operates through its subsidiaries that include Washington Gas Light Company, Washington
Gas Resources Corporation (Washington Gas Resources), Hampshire Gas Company (Hampshire) and Crab Run Gas
Company (Crab Run). Washington Gas subsidiary is a regulated public utility, which sells and delivers natural gas.
Washington Gas Resources owns four unregulated subsidiaries such as Washington Gas Energy Systems, Inc.
(WGESystems), Washington Gas Energy Services, Inc. (WGEServices), Capitol Energy Ventures Corp. (CEV), and
WGSW, Inc. WGL’s unregulated subsidiaries provide energy-related services to residential and commercial customers
including the government organizations. The company’s subsidiary Hampshire is an underground natural gas storage
company while its subsidiary Crab Run is a small exploration and production company.

WGL operates its business through four reportable segments, namely, Regulated Utility, Retail Energy-Marketing, Design-
Build Energy Systems and Other Activities.

In the Regulated Utility segment, the company operates through its subsidiaries Washington Gas and Hampshire. This
segment through the company’s subsidiary Washington Gas offers regulated gas distribution services including the sale
and delivery of natural gas, responding to customer inquiries, meter reading, bill preparation, and the construction and
maintenance of its natural gas distribution system, to customers in the District of Columbia and the surrounding
metropolitan areas in Virginia and Maryland. Washington Gas also offers natural gas transportation services to an
unaffiliated natural gas distribution company in West Virginia. As at September 30, 2010, Washington Gas had 664 miles
of transmission mains, 13,453 miles of distribution services, and 12,414 miles of distribution mains. Washington Gas had
1.1 million active customer meters resulting in 1,758.4 million therms delivered as at September 30, 2010. This subsidiary
also has the storage capacity for 15 million gallons of propane for peak-shaving.

WGL’s subsidiary Hampshire operates and owns full and partial interests in underground natural gas storage facilities
including pipeline delivery facilities situated at Hampshire County, West Virginia. Hampshire provides its services
exclusively to Washington Gas. During fiscal 2010, Regulated Utility segment generated 48.36% of the company’s total
revenues.


The company’s Retail Energy-Marketing segment includes the operations of WGEServices subsidiary that sells natural
gas and electric commodity directly to residential, commercial and industrial customers in Virginia, Maryland, Delaware,
Pennsylvania and the District of Columbia. In addition, WGEServices is expanding its renewable energy and energy
conservation product and service offerings. As at September 30, 2010, this segment served 161,000 commercial,
residential and industrial natural gas customers and 155,000 residential, commercial and industrial electricity customers.
During fiscal 2010, Retail Energy-Marketing segment generated 50.89% of the company’s total revenues.

Design-Build Energy Systems segment of the company consists of the operations of WGESystems subsidiary, which
offers design-build energy efficient and sustainable solutions to government and commercial clients under construction
contracts. This segment is focusing on upgrading electrical, mechanical, water and energy-related systems of large
governmental and commercial facilities by implementing both traditional as well as alternative energy technologies, in the
District of Columbia, Virginia and Maryland. During fiscal 2010, Design-Build Energy Systems segment generated 0.71%
of the company’s total revenues.

Other Activities segment comprised of the operations of CEV and WGSW, Inc. CEV is an unregulated wholesale energy
company engaged in the acquisition and optimization of natural gas storage and transportation assets while WGSW is a
holding company which invests in solar photovoltaic power generating facilities. During fiscal 2010, Other Activities
segment generated 0.04% of the company’s total revenues.

Recently, the company entered into a solar system investment agreement with California-based residential solar system
installer, American Solar Direct Inc. (ASDI). Also, WGL made a US$5 million equity investment in ASDI's parent company,
American Solar Direct Holdings Inc. (ASDHI), to establish a long-term strategic relationship.




___________________________________________________________________________________________

WGL Holdings, Inc. - SWOT Profile                                                                                 Page 3
WGL Holdings, Inc.

__________________________________________________________________________________________


WGL Holdings, Inc. - Major Products and Services

WGL Holdings, Inc., principally sells and delivers natural gas through its subsidiaries. Its key products and services
include the following:

WGL Holdings, Inc., Major Products and Services
Products:

Natural gas

Services:

Retail energy marketing

Design-build energy systems
Source: Annual Report, Company Website, Primary and Secondary Research




___________________________________________________________________________________________

WGL Holdings, Inc. - SWOT Profile                                                                                    Page 4
WGL Holdings, Inc.

__________________________________________________________________________________________


WGL Holdings, Inc. - History

WGL Holdings, Inc., History

    Year                Event type                                                  Description

								
To top