Energy holding company NiSource Inc. (NI) reported Friday a loss for the third quarter compared to a profit last year. Revenues from gas distribution and gas transmission & storage businesses increased from the prior year, which were partially offset by increased pension expense and incremental interest expenses. NiSource also said its earnings outlook remains consistent with that previously announced. The Merrillville, Indiana-based company's net loss for the quarter was $15.4 million or $0.05 per share, compared to a net income of $20 million or $0.07 per share in the previous year. NiSource recorded a net loss on sale of discontinued operations of $12.4 million through September 30, 2009, related to the proposed sale of its unregulated natural gas marketing activities.
Loss from continuing operations was $9.7 million or $0.03 per share, in comparison with an income from continuing operations of $31.1 million or $0.10 per share in the prior year. Non-GAAP operating earnings increased to $134.3 million from $101.8 million last year. Net operating earnings from continuing operations, on a non-GAAP basis, were $18.8 million or $0.07 per basic share, compared to $7.7 million or $0.03 per basic share in the preceding year.
On average, seven analysts polled by Thomson Reuters expected the company to report a loss of $0.01 per share for the quarter. Analysts' estimates typically exclude special items.
In its second quarter, the company's net loss narrowed to $4.8 million or $0.02 per share from $202.3 million or $0.73 per share in the previous year. Loss from continuing operations was $8.7 million or $0.03 per share, compared to an income of $19.7 million or $0.07 per share in the same quarter last year.
For the third quarter, total net revenues increased to $657.5 million from $613.4 million in the same quarter last year. Non-GAAP net revenues grew to $682.1 million from $620.9 million last year. Analysts expected revenues of $1.31 billion for the quarter.
For the recent quarter, Gas Distribution revenues declined to $297.3 million from $548.3 million in the preceding year. Gas Transportation and Storage revenues were $242.9 million, up from $217.6 million in the earlier year. Electric revenues decreased to $320 million from last year's $379.1 million.
Operating income for the quarter was $99.6 million, compared to $105.6 million in the prior year. Gas Distribution Operations' operating loss was $33.9 million, compared to a loss of $55.9 million in the previous year. Gas Transmission and Storage Operations posted operating income of $99.9 million, higher than $82.3 million a year ago. Operating income from Electric operations declined to $43.5 million from $81.4 million in the preceding year. Total operating expenses for NiSource increased to $563.7 million from $511.2 million in the previous year. For the third quarter, pension expenses increased about $13 million compared to the prior period. According to the company, the deferral, which includes both pension and other post retirement benefits expenses, is expected to positively impact 2009 operating earnings by about $13 million, or about $0.03 per share. For the nine-month period, the company posted net income of $128.2 million or $0.47 per share, compared to a net loss of $83 million or $0.30 per share in the earlier year. Income from continuing operations for the period decreased to $141.3 million or $0.51 per share from $239.4 million or $0.86 per share in the preceding year. Total net revenues increased to $2.39 billion from $2.31 billion in the year-ago period. Non-GAAP net revenues were $2.42 billion, up from $2.32 billion in the prior year.
Robert Skaggs, Jr., president and chief executive officer said, "Despite continued economic challenges - particularly in northwest Indiana - the company's underlying business performance has been strong, our liquidity position is solid, and we are producing tangible results from our core business strategy for delivering long-term, sustainable earnings growth."
The company said its earnings outlook remains consistent with previously announced net operating earnings guidance of $1.00 - $1.10 per share for 2009. Street analysts are looking for earnings of $1.03 per share for the full year.
NI is currently trading at $13.09, down $0.22 or 1.65%, on a volume of 891 thousand shares.
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