(RTTNews) - Thursday, Southern Union Co. (SUG:
News ), a natural gas company, reported higher profit for the third quarter, reflecting reduction in repair and abandonment costs, lower cost of gas and other energy and absence of loss on extinguishment of preferred stock recorded last year. Quarterly revenue declined. Further, the company reiterated earnings per share outlook for the fiscal 2009.
The Houston, Texas - based company reported third-quarter net income available to shareholders of $44.75 million or $0.36 per share, up from $42.48 million or $0.34 per share in the prior year quarter.
Adjusted net earnings available for common stockholders increased to $42.7 million or $0.34 per share from $36 million or $0.29 per share in the prior year quarter. The company noted that it recognised a $0.02 per share write off equipment charge due to a fire at its Keystone processing plant at its gathering and processing subsidiary. The prior year quarter included a loss on extinguishment of preferred stock of $2.036 million compared to nil for the latest quarter.
On average, 8 analysts polled by Thomson Reuters expected the company to report profit of $0.30 per share for the quarter. Analysts' estimates typically exclude special items.
Net operating revenues for the quarter was $269.86 million compared to $290.57 million in the prior year quarter and adjusted net operating revenues, excluding mark-to-market accounting treatment, declined to $270.31 million from $276.83 million in the previous year quarter. Analysts expected revenue of $440.81 million for the quarter.
Segment-wise, revenue for transportation and storage was up to $176.09 million from $173.40 million, while gathering and processing segment revenue plunged to $189.55 million from $392.32 million last year. Distribution segment revenue also declined to $71.39 million from $89.89 million in the prior year quarter.
Total operating expense was $348.27 million, down from $560 million and operating income for the quarter declined to $90.17 million from $97.28 million in the comparable quarter last year. Cost of gas and other energy declined to $165.03 million from $361.97 million a year ago.
For the nine months ended, net income available to common shareholders declined to $119.94 million from $158.52 million in the prior year. Year-to-date revenue was down to $1.57 billion from $2.34 billion last year.
Southern Union reaffirms its fiscal 2009 net earnings per share guidance of $1.45-$1.60 and adjusted net earnings per share guidance of $1.75-$1.90.
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