logo
Share SHARE
FONT-SIZE Plus   Neg

Spectra Energy Corp. Q4 Profit Down, But Above Consensus

Natural gas and oil pipeline company Spectra Energy Corp. (SE: Quote) Tuesday reported a decline in its fourth-quarter profit, hurt mainly by lower revenues. However, earnings per share topped analyst estimates by a penny.

The company also said it is targeting investments of $25 billion in capital expansion projects through the end of the decade, aimed for long-term earnings growth and attractive dividend increases for its investors.

Greg Ebel, president and chief executive officer of the company said, "Throughout 2012 Spectra Energy's fee-based businesses generated strong earnings and cash flows, helping to offset the effects of lower commodity prices."

Net income for the three-month period declined to $241 million from $312 million in the same period last year.

Net income from controlling interests totaled $213 million or $0.32 per share, down from $289 million or $0.44 per share last year.

On average, 11 analysts polled by Thomson Reuters expected the company to earn $0.31 per share for the quarter. Analysts' estimates typically exclude special items.

Operating revenues for the quarter declined to $1.35 billion from $1.43 billion last year. Analysts expected revenues of $1.40 billion.

Separately, Spectra Energy Partners, LP (SEP: Quote), an investment arm of Spectra Energy Corp., said its fourth-quarter net income increased to $48.1 million from $42.0 million in the prior-year quarter. Net income per limited partner unit rose to $0.40 from $0.38 last year.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.37 per share for the quarter. Analysts' estimates typically exclude special items.

Spectra Energy Partners, through its subsidiaries, engages in the transportation of natural gas through interstate pipeline systems, and the storage of natural gas in underground facilities.

Operating revenues for the quarter grew to $59.0 million from $57.9 million in the year ago quarter. Eight analysts had consensus revenue estimate of $60.50 million for the quarter.

The company also announced its 2013 financial outlook, which includes estimated cash available for distribution of $239 million.

SE closed Monday's regular trading at $27.98 on the NYSE, while SEP ended at $34.38.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
We are just a few weeks into 2015 and it has already been a busy year for merger deals and merger talks. Here is a list of some of the M&A stories that have made headlines so far in 2015. Diversified electronics maker TE Connectivity Ltd. is nearing a deal to sell its network solutions business unit to CommScope Holding Co., Inc. (COMM) in a deal valued at about $3 billion, according a Wall Street Journal report on Monday. A deal could be announced as early as this week. There has... The video game industry waltzed through 2014 with a record $24 billion in acquisitions and IPOs, says advisory firm Digi-Capital. The frenzied activity in the industry came as companies vied to get hold of game titles that could tilt the scale in their favor, and the need to shore up investment in infrastructure and marketing.
comments powered by Disqus
RELATED NEWS
Trade SE now with 
Follow RTT