(RTTNews) - Natural gas company Spectra Energy Corp. (SE: News ) Thursday reported a sharp decline in its third-quarter profit, hurt by lower revenues and other income, amid a weak commodity pricing environment. The company's ongoing earnings per share were lower than last year, yet managed to come in above analysts' forecast. The Houston, Texas-based company also confirmed its ongoing earnings per share outlook for fiscal 2009.

The company reported third-quarter net income from controlling interests of $191 million or $0.30 per share, compared to $296 million or $0.48 per share in the prior year quarter.

Ongoing net income for the quarter was $190 million or $0.30 per share, down from $302 million or $0.49 per share last year. On average, 11 analysts polled by Thomson Reuters expected the company to report earnings of $0.26 per share for the quarter. Analysts' estimates typically exclude special items.

Spectra also reported quarterly operating revenues of $933 million, down from $1.08 billion in the prior-year quarter. Six analysts had a consensus revenue estimate of $986.24 million for the quarter.

For the second quarter, the company reported net income from controlling interests of $140 million or $0.22 per share on operating revenues of $937 million.
Based on segments, U.S. Transmission generated revenues of $427 million, up from $402 million a year ago. Earnings before interest and taxes, or EBIT, were $239 million, compared with $213 million in third quarter 2008. The 2008 period included a $4 million charge for the final resolution of a customer bankruptcy settlement, the company noted.

Distribution revenues declined to $244 million from $280 million in the previous year. EBIT was $48 million, compared with $44 million a year ago. Excluding the effect of the weaker Canadian dollar, earnings were $6 million higher this quarter. The segment continued to benefit from higher storage and transportation revenues during the period, Spectra stated.

Western Canada Transmission & Processing posted revenues of $260 million, lower than the $397 million reported last year. EBIT slid to $84 million from prior year's $113 million. Improved revenues in the fee-based gathering and processing business, due to stronger activity in the Fort Nelson and Grizzly Valley regions, were more than offset by lower Empress earnings on lower frac spreads. Frac spreads at Empress averaged $6.75 for the quarter, compared with $10.86 in the third quarter of 2008.

To receive FREE breaking news email alerts for Spectra Energy Corp. and others in your portfolio

 1   2   3   Next Page