UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

[X]

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2003

OR

[  ]

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                                  to                             

Commission file number 1-1055

Florida Public Utilities Company

(Exact name of registrant as specified in its charter)

Florida

59-0539080

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification Number)

401 South Dixie Highway, West Palm Beach, FL

33401

(Address of principal executive offices)

(Zip Code)

(561) 832-2461

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports),  and (2) has been subject to such filing requirements for the

past 90 days.  Yes    [ X ]            No  [   ]    

Indicate by check mark whether the registrant is an accelerated filer (as defined in rule 12b-2 of the Exchange Act).

Yes   [    ]      No    [ X ]

APPLICABLE ONLY TO CORPORATE ISSUERS:

(Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date)

On May 1, 2003 there were 3,898,160 shares of $1.50 par value common shares outstanding.

FLORIDA PUBLIC UTILITIES COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(dollars in thousands, except per share data)

Three Months Ended

March 31,

2003

2002

Revenues

   Natural gas

$          18,385

$          11,707

   Electric

              9,804

              9,782

   Propane gas

              2,960

              2,228

      Total revenues

            31,149

            23,717

Cost of fuel and taxes based on revenues

             19,908

             14,085

Gross Profit

             11,241

               9,632

Operating Expenses

   Operations

               5,132

               4,621

   Depreciation and amortization

               1,328

               1,249

   Taxes other than income taxes

                  646

                  601

      Total operating expenses

               7,106

               6,471

Operating income before income taxes

               4,135

               3,161

Interest Charges and Other

   Merchandise and service revenue

                (803)

                (808)

   Merchandise and service expenses

                 757

                 686

   Gain from sale of property

                     -

                 (85)

   Other (income) deductions

                   72

                 (74)

   Interest expense

              1,177

              1,076

      Total interest charges and other

              1,203

                 795

Income from continuing operations before

     income taxes

              2,932

              2,366

Income taxes

     (1,119)

    (900)

Income from continuing operations

     1,813

1,466

Discontinued Operations

Income from discontinued operations – water  

    division

                149

                 146

Income taxes

                 (16)

                  (38)

Gain on disposal of water division, net of income     

    taxes of $5,960

              9,749

                     -

  Total income from discontinued operations

              9,882

                 108

Net Income

            11,695

              1,574

Preferred Stock Dividends

                    7

                    7

Earnings for Common Stock

$         11,688

$           1,567

Earnings Per Common Share (basic and diluted):

   Continuing Operations

$             0.46

$             0.38

   Discontinued Operations

               2.54

               0.03

   Total

$             3.00

$             0.41

Dividends Declared Per Common Share

$             0.14

$             0.14

Average Shares Outstanding

       3,894,978

       3,859,908

The financial statements should be read in conjunction with the Notes herein and the Notes to Consolidated Financial Statements appearing in the most recent Form 10-K.

FLORIDA PUBLIC UTILITIES COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(dollars in thousands)

March 31,

December 31,

2003

2002

ASSETS

Utility Plant

      $    153,201

      $    152,907

   Less accumulated depreciation

              56,287

              54,952

   Net utility plant

              96,914

              97,955

Current Assets

   Cash

                4,286

                3,200

   Accounts receivable

              13,068

                9,065

   Allowance for uncollectible accounts

                  (209)

                  (304)

   Unbilled receivable

                1,369

                1,470

   Inventories (at average or unit cost)

                3,216

                3,108

   Prepayments and deferrals

                   502

                   749

   Under recovery of conservation and

       unbundling

                       -

                     36

Assets held for sale – water division

                       -

              10,178

        Total current assets

              22,232

              27,502

Other Assets

   Investments held for environmental costs

                2,815

                2,815

   Other regulatory assets - environmental

                2,900

                       -

   Other long term investments

                5,726

                       -

   Deferred charges

              10,204

              10,375

   Goodwill

                3,364

                3,348

   Intangible assets (net)

                2,826

                2,828

      Total other assets

              27,835

              19,366

          Total

      $    146,981

      $    144,823

CAPITALIZATION AND LIABILITIES

Capitalization

   Common shareholders' equity

      $      42,182

      $      30,883

   Preferred stock

                   600

                   600

   Long-term debt

              52,500

              52,500

      Total capitalization

              95,282

              83,983

Current Liabilities

   Notes payable

                       -

              19,183

   Accounts payable

                8,423

                7,472

   Insurance accrued

                2,268

                2,364

   Interest accrued

                1,440

                   926

   Taxes accrued

                8,501

                   505

   Other accruals and payables

                4,228

                3,218

   Over recovery of fuel costs

                     36

                1,807

   Over recovery of conservation and

      unbundling

                   291

                       -

   Customer deposits

                5,689

                5,615

   Liabilities held for sale – water division

                       -

                1,272

      Total current liabilities

              30,876

              42,362

Other Liabilities

   Deferred income taxes and regulatory tax  

      liability