(RTTNews) - Piedmont Natural Gas Co. Inc. (PNY: News ) on Monday evening forecast earnings for fiscal year 2010 to increase from the preceding year, citing a one-time gain and higher margins, among other items. The company's shares gained more than 4% in the after-hours trading.

For fiscal year 2010, the Charlotte, North Carolina-based company forecasts earnings in a range of $1.90-$2.00 per share. On average, five analysts polled by Thomson Reuters expect the company to report earnings of $1.62 per share for the year. Analysts' estimates typically exclude special items.

Piedmont said the guidance for the year reflects, among other items, a one-time gain of $0.42 per share on the previously announced sale of one-half of the company's 30% ownership interest in SouthStar Energy Services to AGL Resources, and earnings sharing from SouthStar in the company's first fiscal quarter at the current rate of approximately 25%.

The SouthStar transaction is slated to close on January 1, 2010. Further, the company noted that the remainder of the fiscal year would reflect the new ownership and earnings sharing arrangement of 15%.

Utility capital expenditures for the year are currently forecast to be $195.4 million, including $46.3 million for pipeline infrastructure to serve two gas-fired power generation projects in North Carolina that were deferred from last year's capital program at the request of the customers.

In addition, the earnings outlook reflects a $1.1 million increase in the company's annual margin, effective November 1, 2009, following a settlement agreement filed in the company's 2009 South Carolina Rate Stabilization Act proceeding. The outlook also reflects a common stock buyback program to permanently reduce shares outstanding by one million shares, and margin growth from gross customer additions of 1.3% in the company's North Carolina, South Carolina and Tennessee service areas.
In early September, Piedmont reported a net loss for the third quarter that narrowed from the prior-year period despite a significant fall in revenues. At that time, the company also raised the lower end of its fiscal 2009 earnings guidance range provided earlier.

The company's net loss for the third quarter narrowed to $7.3 million from $7.7 million in the previous year. Loss, on a per share basis, was flat with the year-ago period at $0.10. Operating revenues for the quarter dropped 49% to $180.2 million from $354.7 million in the same quarter last year.

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