(RTTNews) - Thursday, electricity utility firm PG & E Corp. (PCG: News ) reported a higher profit for the third quarter on lower operating expenses, more than offsetting a fall in revenue, as a result of lower electric and natural gas revenues. On an adjusted basis, quarterly earnings from operations increased from last year, beating Wall Street estimates by a penny. Looking ahead, the company lowered its earnings outlook for fiscal 2009, while reaffirming its guidance for earnings from operations for the years 2009, 2010, and 2011.

The San Francisco, California-based company reported net income available for common shareholders for the third quarter of $318 million or $0.83 per share, compared to $304 million or $0.83 per share in the year-ago quarter.

Income from operation for the quarter increased to $374 million or $0.93 per share from $318 million or $0.83 per share in the previous year quarter.

The third quarter results included a net charge of $0.10 per share, reflecting costs for accelerated natural gas system survey and maintenance work and a workforce reduction.

Excluding items, third quarter non-GAAP income from operation increased to $358 million or $0.93 per share from $304 million or $0.83 per share in the same quarter last year.

The company noted that the higher year-over-year income from operations was primarily due to additional revenues generated by new capital investments in its infrastructure.

On average, eleven analysts polled by Thomson Reuters expected the company to earn $0.92 per share for the quarter. Analysts estimates typically exclude special items.
For the third quarter of 2009, the company recognized a $26 million interest and state tax benefit related to the tax refund, as a result of the approval by the Joint Committee of Taxation of deferred gain treatment for power plant sales in 1998 and 1999.

Further, the company incurred a $16 million after tax cost to perform accelerated system-wide natural gas integrity surveys and associated remedial work. In addition, the company accrued $34 million, after-tax, of severance costs related to the reduction of about 2% of the utility's workforce in the three months ended September 30.

Total operating revenues for the quarter decreased to $3.24 billion from $3.67 billion in the prior-year quarter. Six analysts had a revenue consensus of $3.48 billion for the third quarter.

Total operating expenses for the third quarter eased significantly to $2.63 billion from $3.04 billion in the third quarter of 2008.

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