Public utility company PG&E Corp. (PCG) on Thursday reported a 3 percent increase in profit for the first quarter on slightly higher revenues that offset costs related to safety measures. However, both revenue and adjusted earnings per share missed analysts' expectations. Looking ahead, the company maintained its earnings outlook for fiscal 2013.
The San Francisco, California-based energy holding company, which conducts business through Pacific Gas and Electric Co., reported net income available for common shareholders of $239 million, up from $233 million in the year-ago period. However, earnings per share edged down to $0.55 from $0.56 in the previous-year quarter on higher number of shares outstanding.
The latest quarter's results include net costs of $62 million pre-tax, or $0.08 per share in connection with natural gas matters, including costs to validate safe pipeline operating pressures and other safety improvements as well as legal and other costs.
Excluding items impacting comparability, earnings from operations for the latest quarter were $276 million or $0.63 per share, compared to $372 million or $0.89 per share in the prior-year quarter. On average, 11 analysts polled by Thomson Reuters expected the company to report earnings per share of $0.69 for the quarter. Analysts' estimates typically exclude one-time items.
PG&E noted that $0.10 per share of the decrease in adjusted earnings was due to the lower regulated return on equity and debt as compared to last year. Other factors included the cost of the regularly scheduled nuclear refueling outage, which accounted for a decrease of $0.06 per share, and additional shares outstanding, which accounted for a decrease of $0.04 per share.
The company has incurred total costs of more than $1.4 billion for natural gas pipeline-related actions since the September 2010 San Bruno pipeline accident, all of which have been incurred at shareholders' expense.
Total operating revenues for the quarter edged up to $3.67 billion from $3.64 billion in the same period last year. Analysts had a consensus revenue estimate for the quarter of $3.76 billion.
During the quarter, PG&E's gas operations team announced completion of three more of the National Transportation Safety Board's 12 safety recommendations that followed the San Bruno accident, and continued to make progress on the remaining five.
Looking ahead to fiscal 2013, PG&E maintained its outlook for reported earnings in a range of $1.66 to $2.22 per share, and adjusted earnings from operations in a range of $2.55 to $2.75 per share. Analysts expect the company to earn $2.65 per share for the year.
In Thursday's regular session, PCG is trading at $47.28, down $0.38 or 0.80 percent on a volume of 688,044 shares.
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