Electricity generator and distributor PG&E Corp. (PCG) is slated to release its second-quarter earnings results before the market's open Wednesday. On average, 11 analysts surveyed by Thomson Reuters expect earnings of $0.84 per share for the quarter, with estimates ranging between $0.81 and $0.88 per share, while revenues are projected to be $3.51 billion, representing a 2% drop from last year.
In the same period a year ago, the San Francisco, California -based company had reported earnings of $0.80 per share on revenues of $3.58 billion.
While releasing first-quarter numbers, Peter Darbee, Chairman, Chief Executive Officer and President of PG&E had stated, "We continue to demonstrate solid earnings growth as we execute on our operational plans and move forward with important capital investments in PG&E's system. The company remains on track with its multi-year financial outlook, focusing on operational excellence, and delivering for our customers."
PG&E then reaffirmed its guidance for fiscal 2009, saying it still expects GAAP earnings in the range of $3.20 to $3.36 per share, including $0.05 to $0.11 per share of certain anticipated items impacting comparability, and earnings from operations in the range of $3.15 to $3.25 per share. Fiscal 2010 earnings, on a GAAP as well as non-GAAP basis, are expected to range between $3.35 and $3.50 per share, and between $3.65 and $3.85 per share for 2011. Analysts project earnings of $3.17 per share for fiscal 2009 and $3.41 per share for 2010.
Founded in 1905, PG&E, through its subsidiaries, operates as a public utility company that engages in electricity and natural gas distribution primarily in northern and central California. With 20,000 employees, the company delivers some of the nation's cleanest energy to 15 million people in the region.
Frost & Sullivan, in an earlier report, had noted that the U.S. utility market continues to slow down as the credit crunch restrains liquidity, and to overcome the condition, the U.S. utility companies have partnered with the government so they can jointly create more liquidity and tax credits.In the ongoing economic crisis, electrical utilities are struggling to find fresh sources of revenues, and the slow down in residential and commercial real estate growth has impacted its steady profits.
According to media reports, PG&E utility Pacific Gas & Electric Co. said in mid July that it wants to raise customer rates by 6.5% in 2011, with additional increases in later years. The hikes reportedly would allow the company to spend $2.7 billion a year on repairs and upgrades to the power grid and some of its power plants, up from $2.2 billion a year currently.
The company plans to file a formal rate-hike request with California Public Utilities Commission, or CPUC, by December 1, the reports said. CPUC regulates privately owned electric, natural gas, telecommunications, water, railroad, rail transit, and passenger transportation companies. In a separate request, the company has asked regulators for approval to spend $2 billion on upgrading the grid to limit blackouts. However, the planned rate-hike request is likely to face strong opposition from customers, mainly as California struggles with an unemployment rate of 11%, well above the national average. Also, the state government is currently in severe cost cuts to cope with the worst cash crises in its history.
In its preceding first quarter, PG&E had reported a 7.6% rise in net income available for common shareholders to $241 million or $0.65 per share on lower operating expenses, despite decline in electric and natural gas operating revenues to $3.43 billion. On a non-GAAP basis, earnings from operations for the first quarter were $246 million or $0.66 per share. Among PG&E's rivals, Columbus, Ohio-based American Electric Power Co., Inc. (AEP) last week reported a 12.5% rise in profit for the second quarter to $316 million or $0.67 per share, helped by improved rate structures and cost controls, despite a decline in quarterly revenues. Excluding special items, ongoing earnings for the quarter were $321 million or $0.68 per share, compared to $280 million or $0.70 per share in the year-ago quarter. Revenues for the quarter declined to $3.2 billion from $3.5 billion last year.
Rosemead, California-based power generator and distributor Edison International (EIX) is scheduled to release its second-quarter results on Friday, August 7, with analysts expecting earnings of $0.52 per share on revenues of $3.14 billion, lower than last year's earnings and revenues of $0.79 per share and $3.38 billion, respectively.
Another peer, Sempra Energy (SRE) last Friday said second-quarter profit dropped 19% from last year to $198 million, or $0.80 per share, hurt by over 32% decline in revenues to $1.689 billion, as well as an asset write off at a unit.
Recently, on July 27, Pacific Gas and Electric, a subsidiary of PG&E, said it has entered into a contract with El Dorado Energy, LLC, a unit of Sempra Generation, to purchase 48 megawatts, or MW, of photovoltaic solar power produced at the Copper Mountain Solar facility. The utility's second contract for renewable energy from Sempra Generation, a subsidiary of Sempra Energy, is subject to approval by the California Public Utilities Commission.
While announcing the contract, PG&E had stated that since 2002, it has entered into contracts for more than 20% of its future electric power deliveries from renewable sources. On average, half of the electricity PG&E delivers to its customers comes from carbon-free generating sources, making the company's energy some of the cleanest consumed by any electric utility customers in the nation.
In a June 30 research note, brokerage firm Oppenheimer initiated its coverage on PG&E with 'Outperform' rating.
PCG closed Tuesday's regular trading session at $40.55, down $0.11 or 0.27%, on a volume of 1.7 million shares. In the past 52 weeks, shares have been trading in a broad range of $26.67 - $42.98.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.