Utility company CenterPoint Energy, Inc., (CNP) reported lower earnings for the third-quarter that missed the Street view, and reaffirmed its earnings forecast for 2009.
The Houston, Texas-based company earned $114 million or $0.31 per share, compared to $136 million or $0.39 per share in the same period of 2008. On average, 4 analysts polled by Thomson Reuters expected the company to report $0.32 per share for the quarter. Analysts' estimates typically exclude special items.
Total revenue for the quarter dropped to $1.58 billion from $2.51 billion in the year-ago quarter and came below the $1.61 billion consensus estimate of two analysts.
The company's Electric Transmission & Distribution unit generated revenues of $608 million, up from $552 million last year, while operating income grew to $218 million from $202 million in the same quarter of last year.
Third-quarter revenues from the Natural Gas Distribution segment totaled $402 million, a decline from last year's revenue of $550 billion, and operating loss widened to $15 million from $6 million, mainly due to a higher pension and other operation and maintenance expenses, which more than offset rate increases and higher miscellaneous revenues.
Revenues for Competitive Natural Gas Sales and Services plunged to $399 million from $1.27 billion last year. The segment's operating loss was $8 million as against operating profit of $35 million a year earlier.
During the recent quarter, Interstate Pipelines division posted revenues of $153 million, compared with $143 million reported in the year-earlier quarter, and segment operating income increased to $64 million from $55 million in the corresponding quarter of the previous year. CenterPoint noted that higher revenue from new contracts on the Carthage to Perryville pipeline and for deliveries to gas-fired power generators, was partially offset by higher pension and other operation and maintenance expenses.
Field Services segment witnessed revenues of $63 million, down from the previous year's revenue of $71 million. Operating income for the quarter was $23 million, compared to $44 million in the same quarter of last year.
CenterPoint Energy's operating income for the quarter was $287 million, lower than $337 million in the prior year quarter.
For the nine months ended September 30, 2009, the company posted net income of $267 million or $0.74 per share versus last year's $359 million or $1.05 per share. Total revenue was $5.98 billion, a steep decline from $8.55 billion generated in the comparable period.
David McClanahan, president and chief executive officer of CenterPoint Energy, said, " Lower natural gas and natural gas liquids prices, a decline in natural gas throughput from the traditional basins and reduced basis differentials negatively impacted the performance of our field services and competitive natural gas sales segments. We continue to believe that the overall fundamentals of our balanced portfolio of electric and natural gas businesses position us well as the economy recovers and the energy markets rebound."
Looking ahead to fiscal 2009, CenterPoint Energy still projects earnings in the range of $1.05 - $1.15 per share. Wall Street analysts estimate earnings of $1.07 per share for 2009.
Among other players in the sector, American Electric Power Co., Inc. (AEP) is set to release its third-quarter results on Thursday, with analysts forecasting earnings of $0.85 per share on revenues of $3.97 billion.
Another industry peer, Xcel Energy Inc. (XEL) will publicize its third-quarter numbers before the market on October 29. Analysts expect the company to post earnings of $0.85 per share on revenue of $3.97 billion.
CenterPoint shares, which have been trading between $8.66 and $14.53 in the past 52 weeks, are currently trading at $12.63, down $0.08 or 0.63%.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.