Southern Union Co. (SUG), Thursday announced financial results for the second quarter, reporting a decline in profit, due to a decrease in revenues as well as volumes from the same quarter last year. Quarterly results were also negatively impacted by Hurricane Ike. Earnings for the quarter came in slightly above Street estimates, while revenues fell short. The company provided an update to its forecast, reaffirming its earnings guidance for the full year 2009.
The Houston, Texas-based gas distributor's quarterly net earnings available for common stockholders declined to $31.1 million or $0.25 per share from $37.5 million or $0.30 per share in the same quarter last year.
Excluding mark-to-market unrealized loss of about $3.5 million or $.03 per share, adjusted net earnings available for common stockholders for the quarter dropped to $43.8 million or $0.35 per share from $53.3 million or $0.43 per share last year.
On average, eight analysts polled by Thomson Reuters expected second-quarter earnings of $0.34 per share. Analysts' estimates typically exclude special items such as one-time charges or gains.
Adjusted earnings for the quarter included a mark-to-market gain of about $9.1 million or $0.07 per share realized on economic hedges last year.
Southern Union also estimates Hurricane Ike negatively impacted quarterly results by an additional $1.6 million or $.01 per share on an after-tax basis, as transportation revenues declined due to a continuing decline in volumes.
Operating income for the second quarter dropped to $72.654 million from $90.277 million in the same quarter last year.
Quarterly revenues dropped to $453.03 million from $733.06 million in the same quarter a year ago, below Street estimates of $493.10 million, due to a decline in realized commodity prices at gathering and processing segment.
For the six-month period net earnings available for common stockholders dropped to $75.2 million or $.61 per share from $116.0 million or $.94 per share in the same quarter last year.
Adjusted net earnings available for common stockholders for the period declined to $116.8 million or $.94 per share from $131.8 million or $1.07 per share in the same quarter a year ago.
Revenues for the period dropped to $1.136 billion from $1.685 billion in the similar quarter last year.
Looking forward to the full year 2009, the company reiterated its earnings guidance and continues to expect earnings in the range of $1.45 per share to $1.60 per share and adjusted earnings in the range of $1.75 per share to $1.90 per share. Wall Street currently expect earnings of $1.81 per share.
SUG is currently trading at $18.68, down $0.61 or 3.19%, on a volume of 0.619 million shares on the NYSE.
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