UPDATE 1-SJI first-quarter profit beats market view

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May 9 (Reuters) - Energy services company South Jersey Industries Inc (SJI.N: Quote, Profile, Research) reported first-quarter profit above analysts' estimates helped by hedging gains from inventory transactions.

The company, through its subsidiaries, engages in the purchase, transmission, and sale of natural gas for residential, commercial, and industrial use, primarily in southern New Jersey.

For the quarter, it reported economic earnings of $39.2 million, or $1.32 a share, compared with $38.4 million, or $1.30 a share, a year earlier.

Economic earnings, eliminates unrealized gains and losses on commodity derivative transactions and adjusts for realized gains and losses attributed to hedges on inventory transactions, the company said.

Operating revenue fell more than 5 percent to $348 million.

Analysts were expecting, earnings of $1.14 a share, on revenue of $392.3 million, according to Reuters Estimates.

Earlier, the company announced that it expects 2008 economic earnings to grow by 6 to 10 percent. Analysts expect 2008 earnings of $2.19.

Shares of the Folsom, New Jersey-based company were trading down 18 cents at $36.97 in morning trade on the New York Stock Exchange. (Reporting by Shradhha Sharma in Bangalore, Editing by Dinesh Nair)