Gas utility WGL Holdings Inc. (WGL) Friday reported lower first-quarter profit as reduced gas sales impacted revenues that missed Street estimates. Results for the quarter also reflect mark-to-market losses, compared to gains last year. But, excluding items, operating earnings for the quarter improved from the prior year.
Looking ahead, WGL raised its net earnings outlook for fiscal 2012, but kept its operating earnings guidance intact.
WGL, the parent of Washington Gas Light Co., reported net income to common shares of $50.4 million or $0.98 per share for the first quarter. This compares to net income of $65 million or $1.28 per share last year.
Results for the quarter include, among other items, mark-to-market loss of about $12 million, compared to a gain of $12 million last year.
Excluding items, operating earnings for the quarter was higher at $58 million or $1.13 per share, compared to $52.6 million or $1.03 per share a year ago.
On average, 8 analysts polled by Thomson Reuters expected earnings of $1.13 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter slid to $725.8 million from $795.9 million last year.Analysts expected revenues of $870.64 million.
Utility revenues fell to $364 million from $409 million, and non-utility revenues declined to $363.6 million from $386.6 million.
At Retail Utility, WGL noted that higher revenues due to new rates in Virginia and Maryland and a rise in active customer meters were offset by lower margins.
Wholesale Energy Solution segment was impacted by lower market prices of natural gas and increased costs.
Retail Energy-Marketing segment meanwhile gained from better natural gas and electricity margins, partly offset by lower retail sales volumes due to warmer weather and less profitable optimization.
Utility Gas sales and deliveries for the quarter was lower at 453.8 million therms, compared to 571.5 million therms in the prior year.
At Washington Gas Energy Services, natural gas sales volumes fell to 182.7 million therms from 216.5 million therms a year ago. Electricity sales at the unit meanwhile improved to 2.5 billion kWhs from 2.44 billion kWhs last year. WGL now expects fiscal 2012 net earnings of $2.64 to $2.76 per share, compared to its prior guidance of $2.63 to $2.75 per share. The company continues to expect operating earnings of $2.46 to $2.58 per share for the period.
Analysts based on consensus, currently expect earnings of $2.52 per share for 2012.
WGL closed Friday on the NYSE at $43.35, up $0.37 or 0.86%.
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