Great Plains Energy Inc. (GXP), a provider of electricity, Thursday reported a lower profit for the third quarter, impacted by mild weather and recession-driven lower customer demand in the Electric Utility segment. Looking ahead, the company narrowed its full-year earnings guidance range.
Great Plains posted third-quarter earnings of $78.7 million or $0.58 per share, compared with $104.6 million or $0.92 per share in the prior-year quarter. Earnings suffered a $0.11 per share dilution following an 18% increase in number of shares in the period.
On average, three analysts polled by Thomson Reuters expected the company to report earnings of $0.69 per share. Analysts' estimates typically exclude special items.
The company noted that mild weather and recession-driven lower customer demand in the Electric Utility segment affected net sales, bringing down total income from continuing operations to $78.4 million from $104.7 million reported last year.
In the electric utility segment, revenues decreased $5.9 million, following a 37% decline in wholesale revenue on 42% lower prices, offset by a $22.2 million increase in retail revenues, following the acquisitions, new retail rates and cooler weather. Purchased power expenses decreased to $24.2 million, mainly due to a 66% decrease in the average price per Mega-Watt-hour or MWh, on lower natural gas prices, partially offset by a 25% increase in MWh purchases.
Third-quarter 2009 included a full quarter of results from KCP&L Greater Missouri Operations Company, which the company acquired on July 14, 2008. The company contributed lower to revenues in electric utility revenues at $395.5 million compared with $423.7 million year-ago.
"Soft market demand and a periodic pricing disadvantage for coal-fired generation handicapped wholesale sales during the quarter, as natural gas prices fell to their lowest quarterly average since the third quarter of 200", noted the company.
For the first nine months of 2009, the company reported earnings of $133.3 million or $1.04 per share, compared with $146.3 million or $1.54 per share for the same period last year. Electric utility segment earned higher in revenues at $1.48 billion compared with $1.23 billion last year.
Looking forward, for the fiscal year 2009, the company said it now expects earnings in the range of $1.10 to $1.18 per share, compared to its previous guidance range of $1.10 to $1.40 per share. Street analysts expect earnings of $1.17 per share for the year.
GXP finished Thursday's regular trading at $17.65, up 8 cents or 40.46% on 1.69 million shares. In after-hours, shares lost 0.51% or 9 cents and was trading at $17.56.
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